John Yang

Chief US Equity Strategist David Kostin on the market impact of recent policy updates

David Kostin, Carl, John Yang, Sarah

Goldman Sachs strategist David Koston revised 2024 U.S. equity EPS growth forecasts downward to 9% due to a weakening economic outlook, while maintaining a 6,500 target for the S&P 500. Portfolio rotations are shifting toward defensive healthcare and consumer staples as investors grow indifferent to trade policy uncertainty, with a specific focus on low-volatility earnings and companies leveraging AI for revenue generation. Although tariff scenarios could compress margins, the firm continues to view GDP growth and the Magnificent Seven's high reinvestment rates as the primary drivers for sustained market performance pending durable economic data.