Momentum reversal ahead of Q2 season

Research evidence excerpt

Momentum reversal ahead of Q2 season

Portfolio Strategy Research

6 July 2026 | 11:35AM BST

GLOBAL WEEKLY KICKSTART

Global equities rose 2% last week, led by Europe, while Asia Investors prepare for Q2 season Guillaume Jaisson

+44(20)7552-3000 |

underperformed (Exhibit 1). Momentum sold off sharply as n The earnings season kicks off next week and will be guillaume.jaisson@gs.com Goldman Sachs International

investors rotated from recent winners into laggards (Exhibit critical in determining whether elevated valuations are Peter Oppenheimer

31). Ahead of the Q2 reporting season, expectations are justified. This is particularly important following last +44(20)7552-5782 | peter.oppenheimer@gs.com

elevated, with strong EPS growth (Exhibit 7), positive EPS week’s sharp momentum rotation, which saw investors Goldman Sachs International

revisions (Exhibit 22), and positive sentiment (Exhibit 21). move out of recent winners and into laggards. Sharon+44(20)7552-1341Bell |

sharon.bell@gs.com

n Strong growth in the US. Consensus forecasts S&P 500 Goldman Sachs International

Macro data this week EPS growth of 22% in Q2, although the strength John Kwon

US: ISM services index, minutes to the FOMC’s June meeting, remains concentrated, with AI infrastructure companies +65-6654-6337jongmin.kwon@gs.com|

Goldman Sachs (Singapore) Pte

and speaking engagements with Fed officials including expected to account for nearly 60% of total EPS

Giovanni Ferrannini

|events with Governor Waller and Presidents Williams and growth. The median S&P 500 stock is expected to grow +44(20)7051-2589

giovanni.ferrannini@gs.com

Goldman Sachs InternationalLogan. EPS by 9% y/y. The focus will be on whether AI spending

is beginning to generate tangible returns.