Goldman Sachs stays bullish on stocks, expects oil to soften below 70 dollars

Goldman Sachs’ Ashok Varadhan said he expects equities to keep grinding higher into year-end, with the recent unwind in AI-related leverage likely improving the quality of the rally. He also argued the Federal Reserve is more likely to hold rates than hike, citing easing tariff inflation and a possible Strait of Hormuz deal. The most notable market call is bearish for oil: Varadhan expects crude to settle well below $70 a barrel later this year, which he believes would support front-end U.S. yields and be disinflationary. The article highlights, however, that this view conflicts with renewed Hormuz tensions and recent reports of tanker attacks, making the oil outlook more uncertain. Overall, the piece frames Goldman’s stance as constructive on stocks and credit, cautious on yen intervention, and centered on the idea that easing energy prices and softer inflation would keep risk assets supported.