Goldman Sachs(US:GS) Ge Long Hui A P P·2026-01-08 01:56Core Viewpoint - Goldman Sachs strategists predict five key forecasts for the US stock market in 2026, highlighting a continued bull market with a slower pace and strong fundamental support from economic growth, AI productivity, and robust corporate earnings [1] Group 1: Market Predictions - Prediction 1: The bull market is expected to continue, with the S&P 500 index projected to reach approximately 7600 points by the end of the year, indicating an annual increase of about 12% [1] - Prediction 2: Cyclical investments are anticipated to lead the market, driven by economic recovery from government stimulus, the "Inflation Reduction Act," looser financial conditions, and lower-than-expected tariff impacts on the economy [1] Group 2: AI Investment Insights - Prediction 3: AI investments are expected to see a significant increase, with capital expenditures projected to rise by approximately 36% this year to reach $539 billion, and a further 17% increase anticipated by 2027, reaching $629 billion [1] - Prediction 4: The AI market is entering a new phase, characterized by a slowdown in capital expenditure growth, increased AI adoption by more companies, and the emergence of a new batch of AI beneficiary firms [1] Group 3: M&A Activity - Prediction 5: M&A activity is expected to remain robust, with transaction volumes projected to grow by about 15% compared to last year, supported by strong economic growth, favorable financial conditions, and increased confidence among corporate leaders [1]