GOLDMAN WARNS STOCK MARKET CORRECTION IS BIGGEST ECONOMY RISK Goldman Sachs says a U.S. stock market pullback poses the top near-term economic risk. While economist Pierfrancesco Mei expects 2.5% GDP growth in 2026, a 10% market drop could shave 0.5 points, and a 20% slump could cut nearly a full point. The main danger is the wealth effect: high-income households, who hold most stocks, drive spending. A correction would turn this boost into a drag, worsening the K-shaped economy where lower earners already struggle. Midterm election years add volatility—historically, intra-year declines average 19%, with 10% defined as a correction and 20% as a bear market. Even a modest stock drop could weigh on consumer spending and slow growth.(*Walter Bloomberg)