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.

This strategic rotation comes as investors seek alternatives to the AI-driven market surge of the past three years. Nomura Securities International's Charlie McElligott notes a "repricing of economic growth higher," which bodes well for traditional value sectors. This broadening rally suggests a rotation into higher beta parts of the market, benefiting companies closely tied to the fortunes of average American consumers.