Goldman Sachs stock loses nearly all year-to-date gains as bond yields rise

Goldman Sachs ( GS ) stock ticked down slightly early Thursday, extending a painful sell-off that has almost zeroed out 2026 gains for the storied Wall Street bank days ahead of its third quarter earnings release.

Goldman's stock has fallen in 10 of the past 12 weeks, according to Yahoo Finance data, marking a drop of more than 20% since its July peak. For the year, shares were up less than 1% as of Thursday morning.

The retreat comes as a dramatic reversal of investor appetite.

The storied investment bank stood at the center of a banner first half for Wall Street, powered by unusually active markets and a wave of mega corporate deals.

First-half profits have already blown past New York City's full-year forecast, with bonuses now projected to hit another yearly high. Compensation boutique Johnson Associates anticipates the same boom, with big banks leading .

Goldman's extraordinary run over the past five years is also about to deliver a massive payday for its top executives. Some 20 Goldman Sachs executives are set to receive more than $500 million in special equity awards later this month, according to a Bloomberg report . CEO David Solomon alone stands to receive more than $100 million.

The awards, granted five years ago and tied to Goldman's performance over that period, underscore the contrast between the fortunes Wall Street's top bankers have enjoyed and the more uncertain outlook investors now see for the industry.

A sharp rise in government bond yields has raised borrowing costs, threatening to complicate deals and cool demand for financing. The trading boom is also showing signs of fatigue as the global bond market rout has deepened.

Goldman's fixed income, currencies, and commodities trading and financing operations "have been a little bit softer on a relative basis," CEO David Solomon said at a September Barclays conference in New York.

Announced mergers and acquisitions deals globally also slowed sharply during the third quarter , raising questions about whether this year's investment banking surge can keep up momentum into next year.

The stock pressure extends well beyond Goldman Sachs. US bank stocks broadly have retreated in recent weeks as investors reassess the economic outlook amid a new era of interest rate hikes.

Investors will get a detailed look at how Goldman Sachs and other big banks are faring early next week as third quarter bank earnings begin on Tuesday.

David Hollerith covers a range of developments throughout the financial sector, from Wall Street to banking and asset management to crypto and fintech. Email him at david.hollerith@yahoofinance.com. Follow him on X at @DsHollers.