According to Goldman Sachs, the U.S. stock market has reached a new record, exceeding $63.8 trillion in public equity value. This growth occurred over five years, double the amount seen in 2020.
Record Growth of the Stock Market
Goldman Sachs reports that the U.S. stock market has doubled in size over the past five years, reaching $63.8 trillion. This increase occurred significantly faster than the last doubling, which took eight years. Additionally, the U.S. market is now more than three times larger than Europe's and exceeds the combined markets of Europe, China, Hong Kong, Japan, and India.
Political Events and Their Economic Impact
Amidst this economic growth, political events are also influencing the market dynamics. Canada reversed its digital services tax to facilitate trade negotiations with the U.S. This decision followed President Donald Trump's announcement to terminate all trade discussions with Canada.
Goldman Sachs' Rate Cut Predictions
Goldman Sachs anticipates that the Federal Reserve will begin cutting interest rates as early as September. According to chief economist David Mericle, the effects of tariffs have been less significant than previously expected. The firm is forecasting three rate cuts this year, which could lower the target range to 3% - 3.25%.
The U.S. stock market is showing impressive performance despite political and economic challenges. Future forecasts suggest potential continued growth, which may draw investor attention.
