Goldman warns pressure on stocks from higher rates will pull down consumer spending
Goldman Sachs said it expects higher rates to weigh on stock returns, reining in consumer spending that's been boosted by the wealth effect recently.
Read Full Article on Business InsiderAI SUMMARY
# Investment Summary Goldman Sachs warned that elevated interest rates will suppress stock valuations and reduce consumer spending by diminishing the wealth effect that has supported demand in recent months. The firm's analysis suggests investors should expect lower equity returns as higher rates simultaneously pressure both stock multiples and consumer purchasing power.
More Business News
The best Prime Day deals on work bags, totes, and everyday carryalls
The best fried chicken shop in every state
Apple threw a wrench into the digital ad industry, and marketers are bracing for impact
Anduril wants to be the 'next great American icon.' Its CMO has 3 rules for every campaign.
Ukraine showed deep-strike drones must work offline. NATO's interested in cheap versions that can swarm airfields.
Content sourced from Business Insider. Not financial advice.