Goldman Sachs said global equities remain near highs despite the Strait of
Hormuz closure and worsening growth-inflation dynamics, supported by strong
corporate earnings and higher nominal global GDP. The bank said S&P 500 earnings
forecasts for 2026 and 2027 have been revised higher due to AI investment and
elevated energy prices. Goldman added that the rally has been heavily
concentrated in tech, media and telecom shares, while warning that higher oil
prices, persistent inflation and rising bond yields could trigger a near-term
equity correction.
