GS MidDay Color US Equities Mid Day Color

GS Sharkey - US Equities Mid Day Color 14 Oct 2026 Ryan Sharkey · Goldman Sachs · Vice President, FICC & Equities Wed 14 Oct 2026, 1:25pm ET

Ryan Sharkey | Jason Klein | Jack McKeon | Ryan Bailey | Katherine Reynolds

Key Focus: • Markets firmly lower (RTY < NDX < SPX) while digesting a hot CPI print this morning. SPX is currently down 1.1% with ~65% of the index in the red, many eyes watching into the bell as it has been 50+ sessions without a 1% sell-off of the S&P.

• Rates spiked this morning with the 5y, 10y, and 30y all breaching 2007 highs. As such, rate sensitive pockets of the market are underperforming today with Non-Profitable Tech (GSXUNPTC Index) -4.8%, HY Debt Sensitive (GSX1DEBT Index) -4.5%, and Home Builders (GSXUBLDR Index) -2.5%. A market bid for quality and safety is emerging with Cyclicals vs Defensives (GSPRGDPT Index -1.3%) underperforming while Healthcare (XLV+2.2%) stands out in the green.

• Hot CPI print: September core CPI came in at 33bps vs consensus of 20bps, driven namely by a firmer- than-expected shelter category reading. Following this print, Bloomberg now puts percent of hike in October at 40% and December at 88%. GIR continues to expect that the Fed will deliver a second hike in December, and looks to tomorrow’s PPI report and Warsh’s speech in Bangkok for more clarity on timing.

• Ugly moves under the hood in tech: Neoclouds under pressure following social media angst around bond yields hitting 15%. Semis continue to underperform with SOXX -3.9% and are on track for its worst losing streak since July (on track for 6 straight sessions).

• Financials EPS continues to be tough with BAC -5.9% following scrutiny on operational flexibility going forward, MS -3.6% from a miss in PT income and wealth, and STT -6.3% with a top line miss

stemming from servicing and FX trading. Ty DeGrasse and Mitola

• Technical snapshot: ETF volumes are elevated at 33% of the tape (+4% vs 20dma). Exchange volumes are tracking +13% higher vs 20dma at 9.37bn.

Our Flows: • We are currently a 6 out of 10 in terms of overall activity levels and overall franchise flows are skewed 8.9% better for sale.

• LOs are skewed 19.5% better for sale with supply in communication services, macro products, and information technology.

• HFs are skewed 12.6% better for sale with supply in consumer discretionary, macro products, and industrials.

Chart of the Day: The rate of change of growth should decelerate in the next year in both AI and non-AI pockets of the economy, which could create a positive backdrop for quality given this factor tends to outperform as earnings growth rolls over. Our baskets team favors quality, Defensives over Cyclicals and likes shorting long duration pockets like Low-Quality Equities.