"The world's most prominent investment bank says the massive rally in the stock market, which is moving into its fourth year, is not over. It is not close to over. That's because the consumer still has muscle. Their appetite for spending will continue. Affordability will not be a wall that cannot be hurdled. Bloomberg tells as much in a recent headline: "Goldman Sees US Consumer Powering Wider Equity Rally in 2026." It's on the Bloomberg front page in large black letters."
"A group at Goldman Sachs Group Inc., led by Ben Snider, has landed on companies that benefit when middle class consumers ramp up spending, the news service reports. Yet, not every stock surges. Last year, companies with some attachment to artificial intelligence drove the market. This year, it will be healthcare providers, "essential" consumer products, and several slightly smaller sectors. Upscale consumer goods and segments like casinos will lead the rally this time. It will be a rally nevertheless."
Goldman Sachs forecasts the ongoing stock-market rally will continue into 2026 driven by resilient US consumer spending. Rising consumer incomes are expected to offset higher expenses, supporting middle-income household purchases and powering a broader sector rotation. Healthcare providers, essential consumer products, upscale goods, and casinos are identified as beneficiaries, while many technology names may be overvalued. The firm anticipates GDP growth of about 2.1% this year and predicts any market correction in 2026 will be modest and short-lived, with the market still ending the year higher. The consumer's spending appetite remains the primary engine for further equity gains.
Read at 24/7 Wall St.
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