Goldman Sachs Stock Falls 2.15% as Rate Hikes Freeze Deal-Making

Goldman Sachs' stock price fell by 2.15% to $562.15 on September 10, outpacing the broader market's decline.

The investment bank's revenue model is heavily reliant on capital markets activity, which has been affected by rising Treasury yields.

A 10-year Treasury yield of 4.95% has made it economically unattractive for companies to pursue leveraged buyouts and initial public offerings (IPOs), causing a backlog in Goldman's deal pipeline.

Goldman's management is concerned about the rate environment, with Federal Reserve Chairman Kevin Warsh warning that further rate hikes may be on the table.