Goldman Sachs: Earnings Growth to Drive U.S. Stocks Despite Fed Hawkish Risks

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According to Goldman Sachs analysts, earnings growth will likely remain the primary driver for U.S. stocks this year despite persistent Federal Reserve hawkish policy risks. Goldman Sachs expects the Fed to hold rates steady through 2026 while assigning a 25% probability of rate hikes. However, current market pricing reflects expectations of roughly 50 basis points of tightening by mid-2027.
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