Goldman Sachs expects S&P 500 earnings to sustain double-digit growth, citing resilient AI infrastructure demand and low market correlation as key buffers against macro-driven investor anxiety.
Goldman Sachs' strategist expects double-digit S&P 500 earnings growth despite investor anxiety, with positioning near lows since March.
AMD is cited as a $1 trillion AI beneficiary, and rising compute demand suggests continued earnings tailwinds.
The market rallied on Meta's AI narrative despite no official announcement, reflecting speculative enthusiasm.
Goldman Sachs strategist Ben Snider maintains a bullish outlook for the S&P 500, projecting double-digit earnings growth despite investor anxiety and market volatility. While positioning remains near March lows, Snider argues that strong compute demand and AI-driven tailwinds provide a solid foundation for equities, even as the market navigates potential macro headwinds and consumer spending deceleration.
The firm argues that earnings growth remains robust and supported by tangible demand for compute power, rather than purely speculative narrative-driven trading.
Positioning is at its lowest level since March, with hedge funds reducing net leverage and mutual funds increasing cash balances, indicating a cautious sentiment.