Goldman Sachs sees upside for S&P 500 in 2027 — even as earnings growth slows Paige Oamek Fri, November 13, 2026 at 1:56 PM EST 2 min read GS -0.20% ^GSPC -0.52% CL=F -0.19% Trade GS on Coinbase Trading disclosure Trading disclosure The above button links to Coinbase. Yahoo Finance is not a broker-dealer or investment adviser and does not offer securities or cryptocurrencies for sale or facilitate trading. Coinbase pays us for certain activity generated through this link. Prices displayed are informational.
Following a strong year for markets in 2026, Goldman Sachs strategists say they expect stocks to continue climbing next year despite slowing earnings growth.
In their 2027 global macro outlook, Goldman Sachs forecast the S&P 500 (^GSPC) to rise 14% from current levels to 8,700 next year. This year's gains were widespread, driven by surging company profits.
But while Goldman expects the stock market's profit boom to cool, spending on AI data centers to likely peak, and borrowing costs to remain high, the analysts noted that a recent sell-off in technology stocks has made valuations more attractive.
"Earnings growth is poised to slow," Peter Oppenheimer and his team wrote. "But equities have de-rated sharply; with more attractive valuations, positive but slower nominal economic and earnings growth, and lower bond yields, inflation and oil prices, we expect equities to continue to rise, but with high volatility."
As the bull market underpinned by artificial intelligence enters its fifth year, the Goldman team said slowing hyperscaler capex growth will "weaken the support for some of the 'picks and shovels' of the AI-related capex boom."
"Our economists expect a slowing in nominal GDP growth rates in 2027 as the AI investment boom peaks," the analysts wrote. "At the same time, nearly all markets are likely to see their earnings growth rates halve at least: in the US slowing from 36% to 11%."
Regionally, Goldman favors the US and Japan, stays neutral on Asia and emerging markets, and is cautious on Europe.
They also wrote that energy prices should moderate, predicting that Brent crude oil prices (BZ=F) will fall from around $100 per barrel at the end of 2026 to $78 per barrel at the end of 2027, bringing some commodity prices down with it.
"Combined with fading US tariff effects and easing AI-related supply pressures, this should lower inflation and help central banks bring it back towards target," Goldman's team wrote.
They recommend that investors look for companies that can sustain growth as growth becomes scarcer, selecting more stable, defensive picks such as healthcare and utilities.
