Goldman Sachs strategist David Kostin: Stock prices will accelerate again in 2026.

According to Goldman Sachs strategists, the stock market has begun to ignore weak labor data and is expected to accelerate again next year. David Kostin's team stated that expectations of a Fed rate cut this week will further support the stock market. They also added that stock investors optimistically believe that the recent slowdown in the labor market will only be temporary. The cooling of the labor market is seen as a "tailwind for corporate profits" and also opens the door for a Fed rate cut. Profit margins usually track the difference between prices and input costs. It is expected that a 100 basis point change in labor costs will have a 0.7% impact on earnings per share of the S&P 500 index.