Goldman Sachs says oil prices rising to $117 increase growth concerns, predicts the Federal Reserve will raise rates once in December.

Goldman Sachs stated that the recent rise in oil prices has begun to trigger concerns about U.S. economic growth in the market, predicting that the Federal Reserve will raise interest rates once more in December. Goldman Sachs emphasized that as the price of Brent crude oil rose by about 6% this week, reaching $117 per barrel, market attention on high oil prices is gradually shifting from previous inflationary pressures to risks of slowing economic growth. The U.S. 10-year Treasury yield fell below 5% for the first time since the Federal Reserve’s rate hike in September, reflecting growing investor concerns about the economic outlook.Goldman Sachs believes that current inflationary pressure remains temporary in nature and expects the Federal Reserve to implement a rate hike at the December policy meeting, though there is still a possibility of pausing subsequent rate increases. Meanwhile, the market’s doubts about the sustainability of AI infrastructure investment continue to mount. The semiconductor and chip equipment sectors have seen double-digit declines since October, while leading technology companies such as Microsoft have performed relatively steadily.Goldman Sachs mentioned that as Amazon, Alphabet, and Microsoft are about to release their latest earnings reports, the market will further assess the ability of AI investments to translate into actual profits. Currently, the market expects S&P 500 constituent stocks to see a year-on-year increase of 27% in third-quarter earnings per share, with the median company’s growth rate around 9%.