Walter BloombergFinance

STOCKS RALLY DESPITE HORMUZ SHOCK AND STAGFLATION RISKS – GS Global equities remain at highs even amid the Strait of Hormuz closure and wor…

STOCKS RALLY DESPITE HORMUZ SHOCK AND STAGFLATION RISKS – GS Global equities remain at highs even amid the Strait of Hormuz closure and worsening growth‑inflation dynamics, driven mainly by strong corporate earnings, Goldman Sachs says. Earnings growth is supported by rising nominal global GDP and stronger outlooks for tech and energy, with S&P 500 EPS forecasts for 2026–27 sharply revised higher on AI investment and higher energy prices. The rally is highly concentrated, with most gains driven by tech, media, and telecom, while risk appetite is at extreme levels and retail trading has surged. Goldman warns that rising oil prices, persistent inflation, and higher bond yields could trigger a near‑term equity correction. -------------------------------- *STOCKS RALLY DESPITE HORMUZ SHOCK, STAGFLATION RISKS *GLOBAL EQUITIES AT HIGHS AS EARNINGS DRIVE GAINS *AI AND ENERGY LIFT S&P 500 EPS OUTLOOK, GS SAYS *RALLY HIGHLY CONCENTRATED IN TECH, MEDIA, TELECOM *GS WARNS OIL, INFLATION, YIELDS COULD TRIGGER CORRECTION
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