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Goldman Sachs 1-Delta desk says its models are at an extreme negative as reflexivity builds

7/24/2026

Market conditions have turned self-reinforcing, and Goldman Sachs is sounding an alarm. The bank's 1-Delta desk has told clients its models are reading at an extreme negative.

Reflexivity, the mechanism where declining prices damage the very fundamentals those prices are supposed to reflect, feeding further declines, is a key driver, the desk says.

What the 1-Delta desk tracks Goldman Sachs (GS) runs a 1-Delta desk covering instruments that move in direct proportion to their underlying assets.

Delta-one, in plain terms, describes a financial instrument that gives its holder one dollar of exposure for every one dollar of move in whatever it tracks. A futures contract on an equity index is delta-one.