We just published a list of the 10 Best Dow Stocks to Buy for 2027 and Goldman Sachs (NYSE: GS ) ranked 9th on this list.
Yahoo Finance reported on November 5 that the Dow Jones Industrial Average tumbled 3.4%, or more than 1,800 points, while the S&P 500 fell 4.4% and the Nasdaq Composite sank 5.5% into correction territory. Chip stocks took the brunt of the damage, with AI chip designers and memory makers among the hardest hit. The slide erased the gains from a day earlier, when the Dow had jumped 3% for its best session of 2026 after Democrats won control of both chambers of Congress, Yahoo Finance wrote on November 4. By mid-session Thursday, the index was heading for its worst second day after a midterm election in data going back to 1896, the outlet noted.
The Dow's Safe-Haven Run Cracks
For most of the week, the Dow had looked like the sheltered corner of the market. Yahoo Finance reported on November 2 that the Dow edged up 0.4% while the Nasdaq dropped roughly 1% as investors rotated out of technology names and into consumer cyclical and financial services shares, which left the Dow looking like the market's relative winner. On Thursday, that cushion gave way, as the focus turned to what a Democratic Congress could mean for the AI buildout, and for the data centers driving it in particular. You might also be interested in reading our piece on how the AI chip leader's growth compares with the cloud software giant's .
The reversal was fast and violent. Shay Boloor, chief market strategist at an equity research firm, pointed out that the VIX volatility index posted its biggest one-day jump in more than two years. It took the Nasdaq just six minutes on Thursday to erase its entire post-election rally, and even Wednesday's winners such as the iPhone maker turned lower. That Wednesday buying had been helped by falling oil prices, while the Windows maker jumped 6% to a record high.
A Jobs Report Steadies the Tape
Friday brought a partial rebound. Yahoo Finance reported on November 6 that the US added 165,000 jobs in October, and the Nasdaq gained 1.9% while the S&P 500 rose 1% and the Dow added 0.1%. For a closer look at one of the biggest AI spenders caught in the sell-off, we recently covered why the search giant's low price-to-earnings ratio can mislead . The stronger jobs data lifted Treasury yields and kept Federal Reserve policy at the center of market attention, Reuters reported on November 6, as the price-weighted index of 30 major US companies held roughly flat.
Goldman Sachs made the list with an average upside potential of 20%, based on analysts' average price target. It has short interest of 2.42% and had 92 hedge fund holders in Q2 2026.
Goldman Sachs is the Dow's most direct play on a busy capital markets cycle. Third-quarter net revenues reached $18.68 billion, the second highest in the firm's history. Equities trading drove much of the result, with revenue up 72%, while advisory revenue set a quarterly record as completed mergers and acquisitions climbed.
The firm still ranks first in announced M&A, and management said its investment banking backlog stayed strong even after a strong quarter, helped by steady replenishment in equity underwriting. Executives also noted that private equity sponsors are taking a smaller share of announced deals than they historically have, which leaves room for activity to pick up further when that group returns. Chief Executive David Solomon said clients keep turning to the bank for advice, execution and financing.
The steadier side of the business matters just as much. Assets under supervision hit a record $4.1 trillion, supported by long-term net inflows for a 35th straight quarter, which feeds management fees that do not depend on deal timing. Management also raised its full-year fundraising target for alternative assets, which adds fee income that moves less with market swings.
Our analysis on Goldman Sachs (NYSE:GS) is available here: Jim Cramer on Goldman Sachs (GS): "It's Come Down Greatly"
While we acknowledge the potential of GS as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock .
READ NEXT: Nvidia Is Becoming More Than a Chipmaker. Can it Sustain Its Exceptional Margins? and Amazon vs. Alphabet: Is GOOGL's Cloud Growth Being Undervalued?
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