Macroeconomics

Weekly Market Monitor

October 2, 2026 | 3 minute read
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Stay connected with our Weekly Market Monitor, featuring a thematic chart, key market developments, and valuable investment insights across asset classes each week.

Chart of the Week: Rate-Driven Derating

With the S&P 500 delivering a 14% return year-to-date and trading within 1% of an all-time high, US equities might appear immune to higher interest rates at first glance. However, as real yields have risen, forward S&P 500 multiples have contracted from 23x a year ago to 19x today. Strong earnings growth has more than offset the decline in valuations so far, and we expect that to continue, as long as higher rates do not start to derail AI investment plans or weigh on broader economic activity.

Source: Goldman Sachs Global Investment Research and Goldman Sachs Asset Management. As of September 29, 2026. Chart shows the inverted, real 10-year US Treasury yield on the left axis and S&P 500 forward P/E on the right axis. “P/E” refers to the Price-to-Earnings ratio. Past performance does not predict future returns and does not guarantee future results, which may vary. ‘We’ refers to Goldman Sachs Asset Management. For Illustrative Purposes Only. Please see additional disclosures at the end of this presentation.

Download the full document, which includes the chart of the week and insights on market developments. On pages 3 and 4, we further recap equity sector, size and style returns, global index returns, as well as rates and spread movements and a monthly snapshot of global equity valuations.

Weekly Market Monitor
The Market Monitor features a thematic chart and highlights key economic events and data releases driving the past week’s market moves.
weekly market monitor
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