Goldman Sachs Highlights Stock Opportunities Amid Fed Policy Shift
The Federal Reserve's pivot toward easier monetary policy has set the stage for a potential stock market rally. Last week's quarter-point rate cut—the first since December—signals a broader shift, with economists anticipating three to five additional cuts by the end of 2025. Goldman Sachs strategist David Kostin notes equities historically thrive in lower-yield environments when economic growth remains robust.
Corporate profit margins may benefit from slowing wage growth, further supporting equities. Investors should monitor sectors poised to capitalize on this macroeconomic backdrop. The stabilization in job growth data reinforces confidence in a resilient economic outlook.