Goldman Sachs warns US stocks face a tougher 2027 as both economic growth and earnings growth slow. Q3 GDP is tracking 3.6% per the Atlanta Fed's GDPNow, down from over 6% earlier this summer. Goldman forecasts S&P 500 earnings growth falling from about 29% in 2026 to 18% in 2027, while market breadth has narrowed: 84% of index stocks trade at least 10% below their all-time highs, according to The Kobeissi Letter. Goldman highlights consumer-facing laggards, health care and consumer staples as areas of opportunity, since these have historically held up when growth is positive but decelerating. It lists 23 defensive stocks from those sectors, citing low realized volatility and high free cash flow yields.
Summary written by Upside AI from the original article. Read the source for full details.
Read the original on businessinsider.com ↗
Keywords
Goldman SachsS&P 500earningsGDP growthconsumer goods
Open a keyword to see other news on the same topic.
Related tickers and likely impact
SPY
▼ Likely negativeSPDR S&P 500 ETF
Relevance: medium
| Market | US stocks |
|---|---|
| Sector | ETF |
| Close on 10/16/2026 | 763.31 |
| Change that session | -1.10% |
DXY
▼ Likely negativeRelevance: low
| Market | Currencies |
|---|---|
| Close on 10/16/2026 | 101.78 |
| Change that session | -0.20% |
QQQ
▼ Likely negativeInvesco QQQ Trust
Relevance: low
| Market | US stocks |
|---|---|
| Sector | ETF |
| Close on 10/16/2026 | 709.82 |
| Change that session | -2.50% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
Related news
- Oil Prices Are Back Above $100 . History Says the Biggest Stock Market Loser May Now Offer the Biggest Upside .
Oil has traded above $100 a barrel for most of the past month, driven by the Iran war, and energy is the best-performing S&P 500 sector this year with a gain of more than 50%. The author argues oil is rising on supply concerns rather than demand, so energy stocks could fall sharply once the conflict ends, and is less bullish on the sector. By contrast, consumer discretionary (XLY) is the worst-performing sector this year, down 7% and trailing the S&P 500 by roughly 20 percentage points, as annualized inflation of 3.7% in September and near all-time-low consumer sentiment weigh on it. The author points to 2022, when Brent rose 35% while XLY fell 36%, and 2023, when Brent fell about 3% while XLY gained about 40%, as reasons the sector could offer long-term opportunity, while stressing this is not a prediction.
- How worried should we be for the economy ?
The article argues that economies, markets, politics and societies face unusual volatility at once, with global growth sluggish and many major developed economies stalling well below 3 percent. Inflation remains above the 2 percent target, with eurozone inflation hitting 3.8 percent last month, its highest in three years, and the UK's consumer price index reaching 3.1 percent in August. Public debt in several advanced economies reaches or exceeds 100 percent of GDP, while bond yields are elevated globally, with 10-year US Treasuries above 5.3 percent and 30-year yields above 5.6 percent, the highest since 2002. Equity markets look fragile, as seven tech firms account for more than 30 percent of the S&P 500's market capitalization and the price-to-earnings ratio stands at 26.6, versus 16 for much of the last quarter-century. The author also flags eroding education, infrastructure and social cohesion as underlying risks.
- PepsiCo Was Just Dealt Another Blow by Coca-Cola
On October 15, KFC said it will switch from Pepsi to Coca-Cola products across its 4,000 U.S. locations, a deal PepsiCo is expected to cost about $50 million in revenue. It is the third major account PepsiCo has lost to Coca-Cola this year, following Marriott and Costco, as KFC tries to win back customers from rivals. PepsiCo's third-quarter revenue was $25.3 billion, up 5.6%, with EPS of $2.34, slightly above forecasts, but management lowered its full-year 2026 guidance for organic revenue and earnings growth. The article also points to pressure from consumers cutting processed snacks and from GLP-1 drug use, while about 68% of Coca-Cola's portfolio is low- or no-calorie. PepsiCo shares are down 8.7% this year, while Coca-Cola is up 34%.
- Can The Trade Desk's Cash Reserves Strengthen Its Competitive Edge?
The Trade Desk (TTD) held about $1.49 billion in cash, cash equivalents and short-term investments as of June 30, 2026, plus roughly $745 million available under its revolving credit facility. In the second quarter it generated $154 million in operating cash flow and $136 million in free cash flow, and operating cash flow for the first six months reached $545.4 million versus $456.4 million a year earlier. The company continues to invest in its Kokai platform, including the Kokai Zuma release with agentic AI features, and in healthcare integrations with Veeva Crossix and IQVIA Digital. Revenue, however, rose only 3% year over year to $715.1 million in the second quarter, pressured by CPG and automotive, which together generate about 25% of its business. Third-quarter guidance of at least $650 million assumes no meaningful improvement in the macro backdrop.
- iPhone Duo Preorders Sell Out Rapidly As Delivery Estimates Slip Into January
Apple's iPhone Duo, its first foldable phone and most expensive iPhone, opened for preorder on Friday, with launch-day pickup inventory selling out quickly and some online delivery estimates slipping into late January. Apple called demand 'nothing short of extraordinary' and said it will keep taking online orders. The Duo starts at $1,999 and passes $3,000 at the 2TB tier, and supply is expected to be tight; IDC expects Apple to ship about 7 million units this year, roughly 3% of its total, and sees shipments growing 70% next year, which could give Apple about 40% of the foldable market. Analysts say the high price could lift revenue, but it could also stretch out upgrade cycles. Apple's latest quarter brought in $109.4 billion in revenue, up 16%, but it guided September-quarter revenue growth to 9% to 11%, citing supply limits and memory costs.
- FMCGs grapple with cost inflation in Q2 , brace for margin pressure in H2
Related markets
Latest news
- Homebuilder Sentiment Drops To Lowest Level Since 2012
Homebuilder confidence has fallen to its lowest level since 2012, according to the latest NAHB and Wells Fargo Housing Market Index. Rising mortgage rates and higher energy and material costs have pushed builder sentiment to a 14-year low, keeping more buyers on the sidelines. Confidence edged up in March, with the headline index rising one point to 38, but it remains below the breakeven level of 50 that separates positive from negative conditions. Prospective buyers are waiting for lower rates and greater economic clarity, while builders face elevated land, labor and construction costs. NAHB Chief Economist Robert Dietz pointed to global events and energy prices as headwinds, though efforts to reduce regulatory burdens could help long-term housing supply.
- Inflation data shows high energy prices still contained , for now : economists
Canada's annual inflation rate rose to 3.1 per cent in September as gasoline prices jumped 27.8 per cent amid the Middle East war, but came in slightly below the 3.2 per cent economists had expected. Excluding gasoline, consumer prices rose 2.2 per cent, after 2.4 per cent in August. Core measures, CPI-trim at 1.8 per cent and CPI-median at 1.9 per cent, suggest underlying price pressures remain relatively contained and higher energy costs have yet to spread widely. Bank of Canada Governor Tiff Macklem warned the bank was prepared to raise rates if necessary, while CIBC's Andrew Grantham said the data suggests policymakers have little rush to do so. Regional gaps were wide, with Ontario lowest at 2.5 per cent and all three Maritime provinces well above the national rate as heating oil prices surged.
- Sentiment improved , but new tariffs weigh on business outlook : BoC report
The Bank of Canada's business outlook survey found average business sentiment improved in the third quarter, though firms remained worried about rising costs and the war in the Middle East. About three-quarters of the interviews, however, took place before trade talks between Canada and the United States broke down at the end of August and Canada announced new counter-tariffs. Afterward, firms pointed to new U.S. tariffs on some goods and Canadian counter-tariffs as weighing on their outlooks, and the bank said tariffs are dampening sentiment, weakening export and investment prospects, and pushing up costs and prices. A separate consumer survey found long-term inflation expectations rose to match short-term ones, and consumers reported better financial health than last quarter, though high prices and economic uncertainty still weigh on them. The bank's next rate decision and monetary policy report are due Oct. 28.
- Homebuilder Sentiment Drops To Lowest Level Since 2012
Homebuilder confidence has fallen to its lowest level since 2012, according to the latest NAHB and Wells Fargo Housing Market Index. Rising mortgage rates and higher energy and material costs have pushed builder sentiment to a 14-year low, keeping more buyers on the sidelines. Confidence edged up in March, with the headline index rising one point to 38, but it remains below the breakeven level of 50 that separates positive from negative conditions. Prospective buyers are waiting for lower rates and greater economic clarity, while builders face elevated land, labor and construction costs. NAHB Chief Economist Robert Dietz pointed to global events and energy prices as headwinds, though efforts to reduce regulatory burdens could help long-term housing supply.
- Homebuilder Sentiment Drops To Lowest Level Since 2012
Homebuilder confidence has fallen to its lowest level since 2012, according to the latest NAHB and Wells Fargo Housing Market Index. Rising mortgage rates and higher energy and material costs have pushed builder sentiment to a 14-year low, keeping more buyers on the sidelines. Confidence edged up in March, with the headline index rising one point to 38, but it remains below the breakeven level of 50 that separates positive from negative conditions. Prospective buyers are waiting for lower rates and greater economic clarity, while builders face elevated land, labor and construction costs. NAHB Chief Economist Robert Dietz pointed to global events and energy prices as headwinds, though efforts to reduce regulatory burdens could help long-term housing supply.
- One of this year's most important relationships in global financial markets is falling apart
One of the most important relationships in global markets has started to unravel over the past couple of weeks. Investors are scrambling to work out what it could mean for the economy and their portfolios.
Get the briefing on Telegram or Zalo
Join the Upside Telegram channel or Zalo group for the Vietnam stocks and gold briefing at 8:00 and 19:00 (Vietnam time) on trading days, plus a weekly wrap on Saturday morning.