TREE NEWS reports: Goldman Sachs strategists led by Ben Snider said concerns about a US corporate “earnings bubble” are overstated, pointing to strong economic prospects and the AI boom. S&P 500 constituents posted roughly 30% profit growth in each of the first two quarters of the year, among the strongest on record, with full-year earnings growth expected to be the highest since the post-pandemic rebound in 2021. The team expects profit growth to slow gradually in coming years rather than collapse.
Goldman Strategists Dismiss ‘Earnings Bubble’ Fears, See S&P 500 at 8,700
AI take
The pushback against bubble framing rests on the breadth of profit growth rather than its absolute level, which matters for how the AI trade gets judged: if earnings are genuinely broadening, the rally is less dependent on a handful of names. The call's soft spot is its own forecast of gradual deceleration, since the argument for elevated index levels weakens if that slowdown arrives faster than described. Whether profit growth holds near recent records, and whether it stays broad, is the open question.
Generated by AI for reference only.
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