Goldman Sachs Global Markets Daily: Tech Support—The AI Boom and the Dollar
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Goldman Sachs' latest Global Markets Daily highlights the AI boom as a core driver of technology stock performance, while the US dollar navigates a complex crosscurrent of short-term strength and medium-term risks. The firm observes that AI-related investment and enterprise adoption are accelerating, fueling earnings upgrades and valuation expansion across leading AI-exposed companies. This has allowed the technology sector to meaningfully outperform the broader market. According to the report, traditional technology firms continue to lag behind their AI-driven peers. Furthermore, AI infrastructure spending is expected to sustain high growth rates over the coming years.
Regarding foreign exchange, the dollar retains near-term support from the Federal Reserve's hawkish posture and persistent global economic uncertainty. However, the analysis flags medium-term headwinds for the currency, including elevated US fiscal deficits and the potential for global central banks to further diversify their reserve holdings. A strong dollar could simultaneously weigh on emerging market assets and commodity prices.
The report notes that US equity outperformance and positive inflows remain important drivers, with US forward earnings growth expectations recently seeing significant upward revisions. Global equity markets have also broadly benefited from the AI boom. However, Goldman Sachs does not provide specific numerical forecasts, target prices, or timelines within this publication.
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