The Trump Trade Is Getting Hazy. Where the Stock Market Goes Next.
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Nov 20 2024
0mins
Source: Barron's
Market Outlook: The stock market is expected to remain strong in the first half of 2025, driven by Trump's policies on deregulation and tax cuts, despite potential volatility from tariffs and inflation concerns.
Investment Strategy: Analysts suggest focusing on high-momentum stocks, particularly in financials and industrials, while keeping an eye on bond market trends as they may influence stock performance moving forward.
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Analyst Views on GS
Wall Street analysts forecast GS stock price to fall
12 Analyst Rating
5 Buy
7 Hold
0 Sell
Moderate Buy
Current: 1035.640
Low
604.00
Averages
951.45
High
1100
Current: 1035.640
Low
604.00
Averages
951.45
High
1100
About GS
The Goldman Sachs Group, Inc. is a global financial institution that delivers a range of financial services to a large and diversified client base that includes corporations, financial institutions, governments and individuals. Its segments include Global Banking & Markets, Asset & Wealth Management and Platform Solutions. The Global Banking & Markets segment offers a range of services, including financing, advisory services, risk distribution, and hedging for its institutional and corporate clients. It facilitates client transactions and makes markets in fixed income, equity, currency and commodity products. The Asset & Wealth Management segment manages assets and offers investment products across all asset classes to a diverse set of clients. It also provides investing and wealth advisory solutions. The Platform Solutions segment includes consumer platforms, such as partnerships offering credit cards and point-of-sale financing, and transaction banking and other platform businesses.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Analysis of Today's High CD Rates
- Current Highest Rate: As of June 14, 2026, the highest CD rate is 4% APY offered by Marcus by Goldman Sachs on its 14-month CD, significantly above the market average, enticing savers to lock in funds for better returns.
- Interest Calculation Example: Investing $1,000 in a one-year CD at 1.52% APY results in a year-end balance of $1,015.20, while a 4% APY CD would grow to $1,040.74, demonstrating the direct impact of higher rates on earnings.
- Impact of Deposit Amount: For a 4% APY CD, depositing $10,000 would yield a total balance of $10,407.42 at maturity, translating to $407.42 in interest, emphasizing the positive correlation between deposit amounts and earnings.
- Diversity of CD Types: Beyond traditional CDs, various types such as Bump-up CDs, No-penalty CDs, and Jumbo CDs exist, which may offer lower rates but provide greater flexibility, catering to different saver needs.
See More
SpaceX Completes Largest IPO in History
- Record IPO Size: On June 12, SpaceX successfully completed the largest initial public offering in history, raising approximately $75 billion with a valuation of $1.75 trillion, more than double any previous market debut, indicating strong market confidence in its future growth.
- Strong Market Demand: Despite being priced at over 90 times its 2025 revenue and posting a $4.9 billion net loss, SpaceX's IPO was oversubscribed, with retail investors reportedly submitting over $70 billion in orders, reflecting enthusiasm for the space and AI sectors.
- Surge in AI Spending: The four largest tech companies are projected to increase capital expenditures by 77% to $725 billion in 2023, and despite cash flow pressures, with Amazon's free cash flow down 95%, demand for cloud computing and data centers remains robust.
- Uncertain Future Outlook: While the demand for AI is immense, many corporate generative AI pilot projects have yet to yield measurable returns, prompting investors to carefully assess the relationship between future profitability and current high valuations.
See More
SpaceX Completes Record $75 Billion IPO Amid AI Spending Surge
- Record IPO: On June 12, SpaceX completed the largest initial public offering (IPO) in history, raising approximately $75 billion at a valuation of $1.75 trillion, more than double any previous stock market debut, indicating strong market confidence in its growth potential.
- Significant Stock Surge: By the closing bell, SpaceX's stock jumped 19%, elevating the company's market value above $2 trillion, reflecting investor optimism regarding its potential in the artificial intelligence sector and robust market demand.
- Surge in AI Spending: Amid SpaceX's IPO, the four largest tech companies are projected to spend about $725 billion on capital expenditures this year, a 77% increase from last year, highlighting the sustained strong demand for AI technologies despite high valuations and uncertain profitability.
- Divergent Market Outlook: While some analysts warn that the current high valuations and substantial losses may signal a market peak, others argue that the immense market demand and ongoing investments will drive future profit growth, prompting investors to carefully assess risks and opportunities.
See More
SpaceX IPO Shows Tremendous Potential
- Successful SpaceX IPO: SpaceX's IPO was executed at a fixed price, with underwriters Goldman Sachs and Morgan Stanley ensuring nearly all investors profited, reflecting strong market confidence in its future growth potential.
- Substantial Contract Revenue: SpaceX has lucrative contracts with Google worth $920 million per month and Anthropic at $1.25 billion monthly, indicating its dominant position in the compute rental market and significant profitability.
- Starlink User Growth: With 12 million subscribers, Starlink is poised to attract more users if it can rapidly manufacture satellites and expand coverage, potentially threatening services like Netflix and further increasing its market share.
- Optimistic Future Outlook: As SpaceX's divisions continue to evolve, market sentiment remains bullish, especially with the potential inclusion in the Nasdaq 100, which could attract more capital inflows and drive stock prices higher.
See More
Surge in AI Infrastructure Spending
- Market Spending Surge: AI infrastructure spending is expected to exceed $700 billion in 2023, with Goldman Sachs projecting it could reach between $920 billion and $1.4 trillion next year, indicating robust market demand and investment potential.
- Nvidia's Market Leadership: Nvidia has emerged as the biggest beneficiary of AI infrastructure spending, with an 85% revenue growth last year and a forward P/E of 16 times, showcasing its sustained competitive advantage in AI model training.
- AMD's Growth Potential: Although trailing Nvidia in AI model training, AMD is better positioned for inference and agentic AI, with its market projected to reach $120 billion in the coming years, driving significant growth for the company.
- Micron's Profitability: As one of the top three DRAM manufacturers, Micron benefits from rising DRAM prices, expected to continue achieving record revenues and profits, with a forward P/E of 9 times, highlighting its importance in AI infrastructure.
See More
AI Infrastructure Spending Surges to $700 Billion
- Spending Growth Forecast: AI infrastructure spending is expected to exceed $700 billion in 2023, with Goldman Sachs projecting next year's spending to reach between $920 billion and $1.4 trillion, indicating strong market demand and investment confidence in AI technologies.
- Nvidia's Market Advantage: Nvidia, the biggest beneficiary of AI infrastructure spending, saw an 85% revenue growth last year, with a forward P/E of just 16 times, showcasing its strong competitive position in the GPU market and potential for future growth.
- AMD's Strategic Positioning: Although trailing Nvidia in AI model training, AMD's focus on inference and agentic AI presents significant market opportunities, with expectations to benefit from $100 billion in inference GPU commitments over the coming years.
- Micron's Memory Market Opportunities: As a leading DRAM manufacturer, Micron is capitalizing on rising DRAM prices, with expectations for record revenue and profits as data center spending continues to surge, and its forward P/E of 9 times indicates strong investment value.
See More
Analysis of Today's High CD Rates
- Current Highest Rate: As of June 14, 2026, the highest CD rate is 4% APY offered by Marcus by Goldman Sachs on its 14-month CD, significantly above the market average, enticing savers to lock in funds for better returns.
- Interest Calculation Example: Investing $1,000 in a one-year CD at 1.52% APY results in a year-end balance of $1,015.20, while a 4% APY CD would grow to $1,040.74, demonstrating the direct impact of higher rates on earnings.
- Impact of Deposit Amount: For a 4% APY CD, depositing $10,000 would yield a total balance of $10,407.42 at maturity, translating to $407.42 in interest, emphasizing the positive correlation between deposit amounts and earnings.
- Diversity of CD Types: Beyond traditional CDs, various types such as Bump-up CDs, No-penalty CDs, and Jumbo CDs exist, which may offer lower rates but provide greater flexibility, catering to different saver needs.
See More
SpaceX Completes Largest IPO in History
- Record IPO Size: On June 12, SpaceX successfully completed the largest initial public offering in history, raising approximately $75 billion with a valuation of $1.75 trillion, more than double any previous market debut, indicating strong market confidence in its future growth.
- Strong Market Demand: Despite being priced at over 90 times its 2025 revenue and posting a $4.9 billion net loss, SpaceX's IPO was oversubscribed, with retail investors reportedly submitting over $70 billion in orders, reflecting enthusiasm for the space and AI sectors.
- Surge in AI Spending: The four largest tech companies are projected to increase capital expenditures by 77% to $725 billion in 2023, and despite cash flow pressures, with Amazon's free cash flow down 95%, demand for cloud computing and data centers remains robust.
- Uncertain Future Outlook: While the demand for AI is immense, many corporate generative AI pilot projects have yet to yield measurable returns, prompting investors to carefully assess the relationship between future profitability and current high valuations.
See More
SpaceX Completes Record $75 Billion IPO Amid AI Spending Surge
- Record IPO: On June 12, SpaceX completed the largest initial public offering (IPO) in history, raising approximately $75 billion at a valuation of $1.75 trillion, more than double any previous stock market debut, indicating strong market confidence in its growth potential.
- Significant Stock Surge: By the closing bell, SpaceX's stock jumped 19%, elevating the company's market value above $2 trillion, reflecting investor optimism regarding its potential in the artificial intelligence sector and robust market demand.
- Surge in AI Spending: Amid SpaceX's IPO, the four largest tech companies are projected to spend about $725 billion on capital expenditures this year, a 77% increase from last year, highlighting the sustained strong demand for AI technologies despite high valuations and uncertain profitability.
- Divergent Market Outlook: While some analysts warn that the current high valuations and substantial losses may signal a market peak, others argue that the immense market demand and ongoing investments will drive future profit growth, prompting investors to carefully assess risks and opportunities.
See More
SpaceX IPO Shows Tremendous Potential
- Successful SpaceX IPO: SpaceX's IPO was executed at a fixed price, with underwriters Goldman Sachs and Morgan Stanley ensuring nearly all investors profited, reflecting strong market confidence in its future growth potential.
- Substantial Contract Revenue: SpaceX has lucrative contracts with Google worth $920 million per month and Anthropic at $1.25 billion monthly, indicating its dominant position in the compute rental market and significant profitability.
- Starlink User Growth: With 12 million subscribers, Starlink is poised to attract more users if it can rapidly manufacture satellites and expand coverage, potentially threatening services like Netflix and further increasing its market share.
- Optimistic Future Outlook: As SpaceX's divisions continue to evolve, market sentiment remains bullish, especially with the potential inclusion in the Nasdaq 100, which could attract more capital inflows and drive stock prices higher.
See More
Surge in AI Infrastructure Spending
- Market Spending Surge: AI infrastructure spending is expected to exceed $700 billion in 2023, with Goldman Sachs projecting it could reach between $920 billion and $1.4 trillion next year, indicating robust market demand and investment potential.
- Nvidia's Market Leadership: Nvidia has emerged as the biggest beneficiary of AI infrastructure spending, with an 85% revenue growth last year and a forward P/E of 16 times, showcasing its sustained competitive advantage in AI model training.
- AMD's Growth Potential: Although trailing Nvidia in AI model training, AMD is better positioned for inference and agentic AI, with its market projected to reach $120 billion in the coming years, driving significant growth for the company.
- Micron's Profitability: As one of the top three DRAM manufacturers, Micron benefits from rising DRAM prices, expected to continue achieving record revenues and profits, with a forward P/E of 9 times, highlighting its importance in AI infrastructure.
See More
AI Infrastructure Spending Surges to $700 Billion
- Spending Growth Forecast: AI infrastructure spending is expected to exceed $700 billion in 2023, with Goldman Sachs projecting next year's spending to reach between $920 billion and $1.4 trillion, indicating strong market demand and investment confidence in AI technologies.
- Nvidia's Market Advantage: Nvidia, the biggest beneficiary of AI infrastructure spending, saw an 85% revenue growth last year, with a forward P/E of just 16 times, showcasing its strong competitive position in the GPU market and potential for future growth.
- AMD's Strategic Positioning: Although trailing Nvidia in AI model training, AMD's focus on inference and agentic AI presents significant market opportunities, with expectations to benefit from $100 billion in inference GPU commitments over the coming years.
- Micron's Memory Market Opportunities: As a leading DRAM manufacturer, Micron is capitalizing on rising DRAM prices, with expectations for record revenue and profits as data center spending continues to surge, and its forward P/E of 9 times indicates strong investment value.
See More
