Goldman Sachs dips after HSBC downgrades stock rating

Wall Street giant Goldman Sachs' GS.N shares fall 0.4% to $707.84 premarket, after HSBC downgrades stock's rating to "reduce" from "hold"

Brokerage says it is adopting more cautious stance on U.S. big banks after sizable rally as valuations are increasingly stretched

Says operating fundamentals continue to appear healthy but good news is more than priced in

After brief pause in investment banking activity in April, capital markets are roaring back to life as uncertainty abates

Absence of material increase in investment banking activity over sustained period could lead to a correction in GS stock, HSBC says

GS set to report Q2 earnings on July 16

10 of 22 brokerages rate stock "buy" or higher, 11 "hold" and 1 "sell"; median PT $620.65 - data compiled by LSEG

As of last close, GS stock up 24.2% YTD