Goldman Sachs Shares Soar 3.36% on Bullish China Outlook

On June 30, 2025, Goldman Sachs shares surged by 3.36% in pre-market trading, reflecting a strong bullish sentiment among investors.

Goldman Sachs has maintained its overweight recommendation for the Chinese stock market, particularly focusing on the consumer and financial sectors. This stance is underpinned by the firm's belief in the resilience of China's economic growth, despite short-term challenges. The firm highlights that supportive policies, especially for the banking and real estate sectors, will drive significant growth in these industries.

Additionally, Goldman Sachs continues to favor the consumer sector, which includes medical devices, consumer services, media, and e-commerce retail. These sectors are expected to benefit from both consumer upgrades and sustained policy support.

Goldman Sachs has also expressed its views on the U.S. manufacturing sector, suggesting that tariffs are not the optimal solution for boosting productivity. Instead, the firm advocates for leveraging artificial intelligence and automation to regain a competitive edge in manufacturing. This perspective is supported by data indicating that the U.S. lags behind in AI adoption compared to other countries, particularly China.

Furthermore, Goldman Sachs' macro trading team has noted the increasing likelihood of a rate cut by the Federal Reserve. This expectation is driven by several factors, including a shift in the Fed's policy stance, reduced trade policy uncertainty, and signs of a slowing labor market. The team advises investors to adopt a phased strategy, capitalizing on short-term opportunities while being cautious of potential rate hikes in the latter part of the year.