Goldman Sachs Group's macro trader Bobby Molavi compared the stock market's pattern as it heads into a new year to a boxing match. In this game, the bullish drivers of artificial intelligence and stimulus measures have to contend with bearish forces such as high valuations and credit pressure. As the S&P 500 is about to record double-digit gains for the third year in a row, Molavi estimates that the “Big Seven Tech Stocks” will inject around $600 billion in capital expenditure into the US economy. There are also discussions about reducing income taxes and issuing a $2,000 stimulus check, all of which are on the side of the bullish side. According to Molavi, there will be more favorable factors to support the views of the bulls. “Quantitative austerity is over, deficit spending continues, and there is a $1.2 trillion repurchase authorization in 2026. We also continue to see retail investors entering the market and buying on dips. Additionally, in 2026, there will be deregulation of the banking sector and relaxation of capital requirements,” he wrote in a report to clients.

Goldman Sachs Group's macro trader Bobby Molavi compared the stock market's pattern as it heads into a new year to a boxing match. In this game, the bullish drivers of artificial intelligence and stimulus measures have to contend with bearish forces such as high valuations and credit pressure. As the S&P 500 is about to record double-digit gains for the third year in a row, Molavi estimates that the “Big Seven Tech Stocks” will inject around $600 billion in capital expenditure into the US economy. There are also discussions about reducing income taxes and issuing a $2,000 stimulus check, all of which are on the side of the bullish side. According to Molavi, there will be more favorable factors to support the views of the bulls. “Quantitative austerity is over, deficit spending continues, and there is a $1.2 trillion repurchase authorization in 2026. We also continue to see retail investors entering the market and buying on dips. Additionally, in 2026, there will be deregulation of the banking sector and relaxation of capital requirements,” he wrote in a report to clients.