#GoldManSachs

Goldman Sachs warns: Escalation in the Middle East or a prolonged Strait of Hormuz closure is the biggest risk for markets. Analyst Dominic Wilson notes that while reduced geopolitical fears have fueled a strong equity and AI-driven rally, the risk of a negative shock remains underestimated. The bank also highlights overvalued AI stocks and now expects rate cuts to be delayed until 2026, despite current market optimism.