Suspected Wintermute Wallet Purchased 37.86 Million CAT 4 Hours Ago

Goldman Sachs believes that the market has already overestimated the risks of stagflation and high yields. The diminishing effect of tariffs, potential deflation in energy, and cost reductions driven by AI consumerization are expected to push inflation down. Although growth is slowing, core earnings remain strong and central banks have limited room for hawkish moves. In a "Goldilocks" scenario, AI FOMO may be reignited, and there is no need to wait for the midterm elections. The "Goldilocks" rally could trigger a year-end rally in US equities ahead of schedule.