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Market Chatter: Goldman Sachs CEO Warns of Consumer Behavior Shift in H2 due to Strong Energy Prices

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Elevated crude oil prices resulting from the US-Iran war could shift consumer behavior in H2 if inflation rises, Reuters reported Tuesday, citing Goldman Sachs chief David Solomon.

Shifts in demand trends, although not visible at present, are expected in the next six months with new economic data, Solomon reportedly said.

has reached out to Goldman Sachs to seek further information on possible energy-related consumer behavior shifts.

In the US, higher energy prices have resulted in the steepest inflation hike in three years in April and delayed interest rate cuts. The Federal Reserve will likely keep rates unchanged through next year, according to economists cited by the news agency.

Nonetheless, Solomon reportedly said that the current economic environment presents big opportunities for technology investments, with massive initial public offerings, such as SpaceX, OpenAI, and Anthropic, potentially adding $4 trillion to public markets.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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