Goldman Sachs sees volatility but still expects the rally to continue
Goldman’s John Flood said the latest wobble still fits a rally built on earnings and technicals. That keeps trading desks, bankers, and analysts focused on flow, not fear.
Goldman Sachs is telling clients that the recent swing in U.S. stocks does not automatically break the rally. John Flood, head of Americas Equities Execution Services in Global Banking & Markets, said on Goldman’s Markets podcast that the market’s recent wobble still sits inside a broader setup that can support higher prices, with strong earnings and positive technical conditions doing the heavy lifting.
The message matters inside Goldman because it shapes the tone of client conversations on the sales, trading, and execution desks. If investors are nervous but not fully de-risking, flow can stay alive even when headlines look rough, and that keeps execution teams busy. It also changes the brief for coverage bankers and research analysts, who are more likely to spend time on timing, sector leadership, and capital structure than on outright macro panic. Chris Hussey hosted the June 26, 2026 episode, “S&P to 8,000 This Year?,” which was recorded on June 25.
Flood’s view tracks closely with Goldman Sachs Research’s formal call. In late May, the firm raised its year-end 2026 target on the S&P 500 to 8,000 from 7,600, putting the new target 6.4% above the index’s last close of 7,519.12. Goldman projected S&P 500 earnings per share of $340 in 2026, a 24% increase from the prior year, and said AI infrastructure investment could account for about half of that earnings growth. In other words, the house view is not built on sentiment alone. It is built on earnings and a market that Goldman thinks still has room to run.
The broader outlook is just as constructive. Goldman strategists said U.S. stocks could post a 12% total return in 2026, which would mark a fourth straight year of gains. David Solomon added to that tone in early June, saying markets were in a moment of “more greed than fear.” For Goldman employees on the desks, that combination points to a market where volatility may create intraday noise without forcing clients into the sidelines. It also suggests the firm’s equity businesses can keep benefiting if risk appetite holds, especially in the parts of the market tied to AI spending, earnings surprises, and the continued search for leadership as the rally grinds on.
This article was produced by Prism’s automated news system from verified source data, official records, and press releases, then run through automated quality and moderation checks before publishing. The system is built and supervised by the people who set the standards it runs under. Read our full AI policy.
Did this article answer your question?
