Goldman Sachs Sees Next Phase of Bull Market Spreading Beyond U.S. Tech in 2026

Key Moments

Goldman’s 2026 Outlook: Moderate Returns, Continued Expansion

Goldman Sachs expects the current equity bull market to broaden further in 2026. Gains are likely to extend beyond U.S. technology stocks, as earnings continue to grow across regions.

The bank maintains a constructive view, but overall index-level performance is expected to be lower than in 2025. Strategists led by Peter Oppenheimer forecast about 13% price returns for global equities, rising to 15% when dividends are included. This growth is expected to come mainly from earnings rather than higher valuations.

Goldman frames this view within a backdrop of ongoing economic expansion and modest easing by the U.S. Federal Reserve. They note that it would be unusual to see a major equity setback without a recession, even from elevated valuations.

Shift Away From U.S. Dominance and Style Diversification

A key theme is the growing importance of diversification as market leadership widens. In 2025, Europe, China, and broader Asia outperformed the U.S., marking a shift from the long period in which U.S. equities dominated global returns.

Meanwhile, investment opportunities across styles have broadened. In the U.S., Growth has remained the leading style, while Value has performed better outside the U.S., particularly in Europe. Goldman notes that factor diversification is working, and sector returns are expanding, with many non-tech sectors performing strongly.

Consequently, the strategists continue to look for diversification opportunities, since equities remain concentrated by geography, sector, and stock, especially in the U.S.

Falling Correlations and the Focus on Alpha

Goldman highlights declining stock correlations as another reason to rethink portfolio construction in 2026. With dispersion rising both within technology and across the broader market, investors can focus on potential winners rather than treating equities as a uniform trade.

“It also reflects how investors are targeting AI beneficiaries outside the hyperscalers,” they note. “This includes the application layer. Investors are likely to increasingly focus on companies outside the technology sector that can leverage AI to improve margins and productivity in 2026.”

Positioning Across Regions, Styles, and Sectors

Overall, Goldman advises investors to stay engaged in equities while broadening their opportunity set. They recommend expanding regional exposure, particularly in emerging markets, balancing Growth and Value allocations, and diversifying across sectors.

Additionally, the bank highlights benefits from technology capital expenditure spillovers and AI-related opportunities outside traditional tech. As stock-level concentration eases, actively seeking alpha becomes more important than relying solely on broad market exposure.

Summary of Goldman’s 2026 Equity Views