GS · News · 20261031N

Interest Rate Outlook

GOLDMAN SACHS GROUP INC · 2026-10-31 · Importance 17 · Surprise 24

Goldman Sachs warned that higher interest rates and economic disruption associated with artificial intelligence could make U.S. household demand for equities more vulnerable over the coming years. Households purchased $840 billion of equities in the first half of 2026, more than offsetting weaker demand from U.S. corporations. Households directly own 42% of the U.S. equity market and control a majority when retirement accounts, mutual funds, and ETFs are included.

Key facts

• Goldman Sachs warned that household demand for U.S. equities could become increasingly vulnerable to higher interest rates and AI-related economic disruption, which it identified as major uncertainties for equity valuations over the coming years. source