[Goldman Sachs: No Need to Wait for Midterm Elections, 'Goldilocks' Scenario May Ignite Year-End Rally in U.S. Stocks Ahead of Schedule] BlockBeats News, September 27, Goldman Sachs believes that the market may currently be overpricing the risks of stagflation and rising U.S. Treasury yields. With the diminishing impact of tariffs, potential declines in energy prices, and cost reductions driven by AI technology, inflationary pressures in the U.S. are expected to ease. Meanwhile, although economic growth may slow, corporate core earnings remain resilient. In this 'Goldilocks' scenario, enthusiasm for AI investments may reignite, and the year-end rally in U.S. stocks may not need to wait until after the U.S. midterm elections to begin. Mark Wilson, a partner at Goldman Sachs, stated that recent market trends have already shown related signs, with AI-related assets regaining investor interest after months of consolidation. Goldman Sachs economist Jan Hatzius noted that the upside risks to U.S. economic growth are diminishing. As the effects of fiscal stimulus fade, gasoline prices rise, and mortgage rates increase, economic growth may slow further, which will also limit the room for central banks to continue raising interest rates. Ben Snider, head of Goldman Sachs' U.S. strategy team, believes that although certain industries may experience temporary 'excess profits,' corporate core earnings are likely to maintain strong growth at least through the end of 2027. Based on this, Goldman Sachs suggests that if inflation continues to decline, economic growth moderates, and corporate earnings remain resilient, the market may gradually shift from the previous stagflation trade to a 'Goldilocks' scenario. [Original Link]