Capital Economics economist warns U.S. stocks show late-cycle signs

Capital Economics economist warns U.S. stocks show late-cycle signs

N
News Editor
2026-10-16 02:56:45
Jonas Goltermann, chief market economist at Capital Economics, said U.S. equities are showing a growing number of late-cycle signals and could remain in a correction over the next year, with Treasury yields expected to move lower at the same time. He said recent inflation readings have stayed elevated, but rising doubts over whether the artificial intelligence boom can keep going are weighing on market performance. The remarks point to a combination of macro pressure and changing investor expectations around AI-driven growth, both of which he said are feeding into the current market setup.

According to ChainCatcher, Capital Economics chief market economist Jonas Goltermann warned that U.S. stocks are showing an increasing number of late-cycle signs and may stay in a correction over the next year, while U.S. Treasury yields are expected to fall in tandem.

He said that although recent inflation data has remained high, growing concern over whether the artificial intelligence boom can be sustained is affecting market performance.

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