Market Intelligence: US Morning Update

Research evidence excerpt

Market Intelligence: US Morning Update

Equity Research

29 June 2026 | 8:31AM EDT

Click “here” to listen to the US Morning Call. Chris Hussey

+1(212)902-7564 |

chris.hussey@gs.com

Stocks in Asia were mostly higher Monday, with mainland China and Hong Kong Goldman Sachs & Co. LLC

outperforming. Korea recovered sharply from a low open following reports of heavy Sarah Herr

+1(212)357-0094 | sarah.herr@gs.com

AI investment by the government. In China, industrial profits decline sequentially in Goldman Sachs & Co. LLC

May, but were up 21% yoy (see “China: Industrial profits fell sequentially in May”). Kshitij Garg

Japan retail sales came in well above expectations across a wide range of categories +1(212)934-7434Goldman Sachs India| kshitij.garg@gs.comSPL

(see “Japan: May Retail Sales Increase, Well Above Market Forecast”).

European equities are trading modestly lower amidst scant news in the region. The

latest Eurozone economic sentiment indicator data shows improvement across

sectors.

Price action across oil and US treasury yields remains benign today.

S&P 500 2Q Preview. The S&P 500’s 21% return over the past year has come entirely

from earnings growth, which makes 2Q26 reporting season a key near-term catalyst,

writes Ben Snider in Friday’s “US Weekly Kickstart: S&P 500 Q2 2026 earnings season

preview.” With valuations having eased somewhat, but investor positioning now more

extended, the hurdle for results remains high.

n The setup still looks supportive. A solid macro backdrop and the ongoing AI

investment cycle should help drive another quarter of strong earnings, even

against demanding expectations. Consensus looks for 22% y/y EPS growth in Q2,

with AI infrastructure stocks contributing nearly 60% of total growth and MU and

NVDA accounting for more than 40%.