Markets are taking a more muted view of the US‑Iran conflict than expected, Goldman Sachs chief executive David Solomon said at a business forum in Sydney on March 4.
"I think the market reaction has been more benign, given the magnitude of this, than you might think," Mr. Solomon said, adding that investors will need a couple of weeks to assess the full consequences.
Oil prices rose on concerns about supply disruptions, global equity indices fell, and the dollar strengthened as capital flowed out of risk assets. The S&P 500 lost less than 1% over the week.
Mr. Solomon said geopolitics only affects markets when it poses a threat to economic growth, and he argued that the current resilience of the US economy reflected monetary easing and lighter regulatory pressure.
He warned that the economy could overheat if inflation exceeds consensus forecasts and that competition among banks was loosening lending standards — risks that would intensify if growth slowed. He also said artificial intelligence will reshape the labor market for office occupations, boosting productivity without creating a labor shortage but prompting worker reallocation.
Goldman Sachs is collaborating with Anthropic to automate processes, including client‑facing work, Mr. Solomon said.
