What companies are Goldman Sachs strategists betting on for 2026?

Goldman Sachs strategists are favoring companies that benefit from increased middle-class consumer spending, particularly those selling 'nice to have' items, alongside healthcare providers and materials producers.

Why is Wall Street looking beyond the AI trade for market growth?

Investors are seeking new engines to power the bull market as concerns about a slowdown in the AI trade emerge, leading to a broadening of the rally into other sectors.

What factors are expected to boost US consumer spending in early 2026?

Fading headwinds from trade tariffs, a stabilizing labor market, and tax rebates from recent legislation are anticipated to boost US consumer spending.

Home / Business and Economy / Wall Street Bets on Shoppers for 2026 Bull Run

Wall Street Bets on Shoppers for 2026 Bull Run

8 Jan

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Summary

Goldman Sachs strategists favor companies benefiting from middle-class consumer spending.
The firm is particularly bullish on 'nice to have' goods and services, not just necessities.
Fading trade headwinds, a stable labor market, and tax rebates are expected to boost consumers.

Wall Street Bets on Shoppers for 2026 Bull Run

Wall Street strategists are actively seeking new drivers for the ongoing bull market in American stocks, with a notable shift away from the concentrated artificial intelligence trade. Goldman Sachs, led by Ben Snider, highlights companies poised to benefit from increased middle-class consumer spending as a key area for growth. Their analysis suggests an economic acceleration is forthcoming, which should lift profits for companies with steady growth and thin margins.

The firm's bullish outlook extends to businesses offering "nice to have" products and services, rather than solely essential items. This includes retailers of upscale clothing, household goods manufacturers, tour operators, and casinos. Goldman Sachs anticipates that consumers will receive a boost from diminishing trade headwinds, a more stable labor market, and tax rebates stemming from recent legislation, contributing to improved sales and income growth in early 2026.