{
  "id": 18678324,
  "title": "US midterms could accelerate stock market rotation; Goldman Sachs sees healthcare as ‘next leg of AI trade’",
  "url": "https://urgent.news/2026/11/07/us-midterms-could-accelerate-stock-market-rotation-goldman-sachs-sees",
  "topic": "ai",
  "section": "AI",
  "published": "2026-11-07T09:05:55.000Z",
  "source": {
    "name": "Hindu BusinessLine",
    "slug": "hindu-businessline",
    "url": "https://www.thehindubusinessline.com/markets/us-midterms-could-accelerate-stock-market-rotation-goldman-sachs-sees-healthcare-as-next-leg-of-ai-trade/article71677698.ece"
  },
  "original_language": "en",
  "account": "The upcoming US midterms could hasten stock market reallocation, with Goldman Sachs' Lou Miller suggesting the healthcare sector as a potential defensive investment. Miller explained that investors have already started shifting towards defensive positions before the election, amid a challenging environment for active investors. Data center stocks have declined 36%, memory stocks 42%, optical networking stocks 46% and NeoCloud stocks 57% following sharp corrections in AI-related investments. Miller predicts a lower bar for surprises and positive catalysts ahead for these sectors. Healthcare is identified as a potential beneficiary of the next AI trade, with the sector expected to witness accelerating earnings growth next year, driven by increased AI adoption in medical tools and diagnostics. Miller advised against expensive defensive stocks, such as consumer staples, which have become unattractive due to elevated valuations. He suggested focusing on companies with strong balance sheets, quality earnings, and healthy free cash flows. Miller's preferred trade is the S&P 500 excluding AI, citing attractive valuations and earnings growth prospects. Key market drivers he identified include employment, inflation, corporate earnings, and the Federal Reserve's December 9 policy decision. Looking ahead to year-end, Miller expressed cautious optimism, anticipating a modest rally, described as a \"relaxed Santa Rally.\"",
  "summary": "Investors are reassessing portfolio positions amid market uncertainty, with valuations, earnings prospects and upcoming US economic and policy developments shaping sentiment",
  "key_points": [
    "Goldman Sachs predicts US midterms may accelerate stock market rotation.",
    "Healthcare sector identified as potential defensive investment.",
    "Strong balance sheets, quality earnings, and healthy free cash flows preferred in healthcare."
  ],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}