Goldman Sachs dismisses US earnings bubble fears, sees S&P 500 at 8,700
Goldman Sachs strategists led by Ben Snider argue that fears of a US corporate earnings bubble are overblown, citing robust economic growth and the AI boom. S&P 500 profits rose about 30% in each of the first two quarters of 2026, among the best on record. Goldman forecasts the index will rise 14% to around 8,700 points over the next year, driven by earnings growth. Deutsche Bank also issued a bullish outlook with an S&P 500 year-end target of 8,000. Bank of America strategists warned that investor positioning remains too bullish given slowing profit growth prospects.
Reference imageEditorial responsibility
- No named human review is recorded for this page.
- Reports are grouped by semantic similarity and deterministic rules. Language models may assist titles, summaries, translation and cross-source analysis; the page reads the event directly, while its address stays stable when the title changes.
- Summary awaiting refresh
Summary awaiting refresh
Cross-source coverage
Reporting timeline
Goldman Sachs and Deutsche Bank Reject Crash Fears, See S&P 500 Reaching 8,000
Goldman Sachs and Deutsche Bank have both issued bullish outlooks for U.S. stocks, rejecting concerns about a market crash or earnings bubble. Goldman Sachs chief U.S. equity strategist Ben Snider argued that fears of an earnings bubble are overblown, noting that S&P 500 earnings are growing over 30% year-over-year with a 14% median growth rate. While acknowledging that fiscal stimulus fading and higher energy costs could slow growth, Snider expects earnings to remain strong, supported by AI-related spending on tokens and computing power. Deutsche Bank analyst Binky Chadha reiterated an S&P 500 year-end target of 8,000, citing expected Q3 earnings growth of about 30%, a raised 2027 EPS forecast of $420, and historical trends showing the fourth quarter of midterm election years tends to be positive. Both banks conclude that while growth may moderate in Q4, a crash is unlikely, and continued double-digit profit growth driven by AI investment and U.S. economic resilience should support further index gains.
Goldman Sachs and Deutsche Bank Bullish: S&P 500 Could Break 8,000 Points
Goldman Sachs has dismissed concerns about an earnings bubble in the U.S. stock market, predicting that corporate earnings will continue to grow by double digits starting next quarter. The bank's chief U.S. equity strategist, Ben Snider, argued that fears of an earnings collapse are overblown, noting that S&P 500 earnings are up over 30% year-over-year. While acknowledging a potential slowdown due to fading fiscal stimulus and higher energy costs, Snider expects earnings to remain strong, supported by AI-related demand for tokens and computing power. Separately, Deutsche Bank, led by strategist Binky Chadha, reiterated its year-end target of 8,000 points for the S&P 500. The bank forecasts Q3 earnings growth of about 30% and raised its 2027 earnings per share estimate to $420. Deutsche Bank also cited historical trends, noting that in 21 of the last 23 midterm election years, the market rose in Q4. Both banks conclude that while earnings growth may moderate in Q4, a crash is unlikely, and the index could continue rising through year-end and into next year, driven by AI investment and U.S. economic resilience.
Read sourceGoldman Sachs Says AI Boom Supports Strong US Earnings, Overstates Bubble Fears
Goldman Sachs strategists, led by Ben Snider, have stated that strong economic prospects and the artificial intelligence boom are driving robust growth in U.S. corporate earnings, suggesting that market concerns about an 'earnings bubble' are overstated. Data shows that profits of S&P 500 index constituents grew by approximately 30% in each of the first two quarters of the year, marking one of the strongest performances on record. Full-year earnings growth expectations are at their highest level since the post-pandemic rebound in 2021. While this pace indicates earnings may be running above sustainable levels amid a surge in AI investment, Goldman's team expects profit growth to gradually decelerate over the coming years rather than collapse. Snider forecasts the S&P 500 will rise 14% over the next year to around 8,700 points, driven primarily by earnings growth rather than valuation expansion.
Read sourceShow 3 older updatesHide older updates
Goldman Sachs Strategists Downplay Earnings Bubble Fears, See S&P 500 at 8,700
According to a Cailian Press report on September 18, strategists at Goldman Sachs led by Ben Snider have downplayed concerns about a U.S. corporate 'earnings bubble,' arguing that strong profit growth is supported by a robust economic outlook and the artificial intelligence boom. Data shows S&P 500 company profits grew by approximately 30% in both the first and second quarters of this year, marking one of the strongest performances on record. While acknowledging that this growth rate may be above sustainable levels amid surging AI investment, the Goldman team expects profit growth to gradually slow rather than collapse. Snider forecasts the S&P 500 will rise 14% to about 8,700 points over the next year, driven primarily by earnings growth rather than valuation expansion. He was among the more optimistic strategists at the start of the year, accurately predicting that strong earnings and AI adoption would sustain the bull market despite rising oil prices and interest rate hikes.
Goldman Sachs Strategist Says Fears of US Earnings Bubble Are Overblown
Goldman Sachs Group Inc. strategists, led by Ben Snider, argue that fears of an 'earnings bubble' in US corporate profits are misplaced, as strong earnings are supported by a robust economic outlook and the artificial intelligence boom. S&P 500 profits jumped around 30% in each of the first two quarters of 2026, among the best on record, with full-year expectations at their strongest since the post-Covid rebound in 2021. While the pace suggests companies are 'over-earning' due to AI investment surges, Snider expects profit growth to slow rather than collapse. Goldman forecasts an 11% earnings increase next year, with the AI boost fading by 2027. Snider predicts the S&P 500 will rally 14% to about 8,700 points in the coming year, driven by earnings growth. In contrast, Bank of America strategists, including Jared Woodard and Michael Hartnett, warn that investor positioning remains too bullish given the outlook for slower profit growth, noting US stock funds attracted nearly $64 billion in weekly flows.
Goldman Sachs Says Earnings Bubble Fears Overstated, Sees S&P 500 Rising to 8,700
Goldman Sachs strategists, led by Ben Snider, argue that concerns about an 'earnings bubble' in U.S. stocks are exaggerated, citing strong corporate earnings supported by a robust economic outlook and the artificial intelligence (AI) boom. Goldman Sachs forecasts 11% earnings growth next year, potentially driving the S&P 500 index up by 14% to around 8,700 points over the next twelve months. The strategists expect profit growth to slow rather than collapse, with the AI boost fading by 2027. Meanwhile, Bank of America strategists, including Jared Woodard and Michael Hartnett, warn that investors remain overly optimistic given slowing profit growth prospects, noting that investors poured $63.8 billion into U.S. stocks in the past week while pulling funds from corporate bonds.
Read source