Goldman Sachs analysts believe the year-end rally in global equities may ignite early, and investors do not need to wait for the US midterm elections to conclude before re-entering the market. Mark Wilson, a partner at Goldman Sachs, noted that the market has fully priced in stagflation risks. With a "Goldilocks" economic scenario gradually emerging, easing inflationary pressures, the disinflationary effects of AI, moderating economic growth expectations, and strong core earnings all provide a solid foundation for a stock market rebound.

Research by Goldman Sachs economist Jan Hatzius indicates that while US economic activity has shown greater resilience than expected, upside risks to growth are diminishing, and central banks may raise interest rates less than currently priced in by the market. Ben Snider, head of the US strategy team at Goldman Sachs, believes that some companies have "excess earnings," but overall, an earnings bubble has not formed, and core earnings are expected to remain strong until the end of 2027.