So Goldman Sachs just dropped their 2026 market predictions, and honestly? It’s like your overachieving friend who somehow always nails their New Year’s resolutions. They’re calling for another solid year, but with a “let’s not get too crazy” vibe.
Here’s the tea on what Wall Street’s fortune tellers are seeing:
1. The Bull Market Keeps Chugging (But Maybe Switches to Decaf)
Good news: the party’s not over. Goldman thinks the S&P 500 will hit 7,600 by year-end – that’s a respectable 12% gain. Not the face-melting 16% we saw in 2025, but hey, we’ll take it. Think of it as the market’s version of “sustainable growth” instead of “I can’t feel my face” gains.
The secret sauce? Companies are actually making money (wild concept, right?), the economy’s humming along, and AI is apparently making everyone more productive. Who knew robots could be such team players?
2. Cyclical Stocks Are Having Their Main Character Moment
Remember those boring cyclical stocks that move with the economy? They’re about to be the cool kids again. With Trump’s “Big Beautiful Bill” (yes, that’s the actual name) pumping stimulus into the system and the economy picking up steam, these stocks are ready for their close-up.
Translation: companies that sell stuff to regular people and build things are looking pretty attractive right now.
3. AI Spending Goes Full Beast Mode
Brace yourself: companies are about to throw $539 billion at AI infrastructure in 2026. That’s a 36% jump from last year. To put that in perspective, that’s roughly the GDP of Belgium. Just… for AI stuff.
By 2027? We’re looking at $629 billion. At this point, I’m convinced AI companies have figured out how to print money, and everyone else is desperately trying to get the printer manual.
4. The AI Trade Gets a Glow-Up
We’re entering “Phase 3” of the AI revolution (because apparently everything needs phases now). Phase 1 was “OMG, AI exists!” Phase 2 was “Let’s spend all our money on AI infrastructure!” Phase 3? “Okay, but does this actually make us money?”
Companies will need to prove AI isn’t just expensive digital decoration. The winners will be the ones who can show real productivity gains, not just fancy chatbots that occasionally hallucinate.
5. M&A Mania Returns
Get ready for corporate musical chairs. Goldman expects merger and acquisition activity to jump 15% as companies feel confident enough to start buying each other again. Last year saw $1.9 trillion in deals – a 75% increase. Apparently, when the economy’s good, everyone wants to play Monopoly with real companies.
The Bottom Line: 2026 looks like it’ll be a solid year for investors, just maybe without the champagne-popping euphoria of recent years. Think steady gains, AI continuing its world domination tour, and lots of corporate deal-making. Not the worst problems to have, honestly.