Goldman Sachs: S&P 500 Capital Expenditure Surge 38% in Q1 2026, Signaling Shift from Buybacks

According to Goldman Sachs' latest strategic report, capital expenditures by S&P 500 companies in Q1 2026 surged 38% year-over-year, while stock buybacks grew only 1%, marking a pivotal shift from financial engineering to real asset investment. The research team led by strategist Peter Oppenheimer highlighted that five major technology companies—Amazon, Meta, Google, Microsoft, and Oracle—are projected to spend a combined $75.5 billion on capital expenditure in 2026, up 80% from a year earlier and representing 84% growth compared to 2025 actual spending. This capital spending boom, driven by artificial intelligence infrastructure demands and geopolitical pressures, signals the transition from the "Modern Cycle" (1982–2007) characterized by low inflation, low rates, and globalization, to a "Post-Modern Cycle" marked by higher macro volatility, elevated real rates, and regionalization.
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