Goldman Sachs – Market Pulse, Mar 2026

The report provides macroeconomic and market views for 2026.

It highlights healthy global growth expected despite risks from Middle East escalation, with growth drivers including fading tariff drag, strong capital expenditure, and fiscal support. US growth is anticipated to pick up in the first half of 2026 due to tax cuts, business investment, and a stabilizing job market. Europe is expected to see positive economic surprises supported by Germany's federal spending. Inflation in the US is making progress with core inflation possibly returning to low-2% by year-end, while Euro area inflation is expected near target with risks from sustained higher energy prices. Central banks are likely to look through supply shocks if inflation expectations remain anchored, with a dovish Fed Chair and possible postponement of BoJ rate hikes. Market views note mixed investor sentiment in the AI sector and strong Emerging Markets equities driven by earnings, global growth, AI hardware demand, and commodity prices.