Goldman Sachs Strategist: U.S. Stocks Will Accelerate Again in 2026

According to Jinse Finance, Goldman Sachs strategists report that the stock market has begun to ignore weak labor data and expect stock prices to accelerate again next year. David Kostin's team stated that expectations of a Federal Reserve rate cut this week will further support the stock market. They added that equity investors are optimistic that the recent slowdown in the labor market will only be temporary. They pointed out that the cooling labor market is a "tailwind for corporate profits" and also opens the door for Federal Reserve rate cuts. Profit margins typically track the difference between prices and input costs (including labor). It is estimated that every 100 basis point change in labor cost growth will have a 0.7% impact on S&P 500 earnings per share.