Goldman Sachs Says Stocks Keep Rising Despite Hormuz, Stagflation Risks; Warns of Short-Term Pullback
Summary
- Goldman Sachs said global stock markets are holding near record highs on improving corporate earnings despite risks tied to the Strait of Hormuz and concerns about stagflation.
- Goldman Sachs said forecasts for S&P 500 EPS in 2026 and 2027 were revised sharply higher, driven by rising artificial intelligence (AI) investment and higher energy prices.
- Goldman Sachs said higher oil prices, persistent inflation, and rising Treasury yields could trigger a short-term stock-market correction.
Forecast Trend Report by Period
Global stock markets are continuing to rise despite risks tied to the Strait of Hormuz and concerns about stagflation, Goldman Sachs said.
Walter Bloomberg, the overseas breaking-news account, cited a recent Goldman Sachs report on May 19 as saying global equities are holding near record highs on improving corporate earnings.
Goldman Sachs said its forecasts for S&P 500 earnings per share in 2026 and 2027 were revised sharply higher, driven by rising investment in artificial intelligence and higher energy prices.
Gains have been concentrated in technology, media and telecommunications stocks. Risk appetite and retail trading activity have also reached extreme levels, the bank said.
Goldman Sachs said higher oil prices, persistent inflation and rising Treasury yields could trigger a short-term stock-market correction.
Minseung Kang
minriver@bloomingbit.ioBlockchain journalist | Writer of Trade Now & Altcoin Now, must-read content for investors.
