Goldman Sachs strategists: Rate hikes will not end the stock bull market.

When the Federal Reserve begins a rate-hiking cycle, stocks typically come under pressure, but Goldman Sachs expects the bull market to continue. The strategist team led by Ben Snider said that rising rates will weigh on equity valuations, but earnings are the most core driver of the stock market. The team said the S&P 500's forward price-to-earnings ratio has fallen from 22 times at the start of the year to 19 times currently, though the index is still less than 2% from its record high. The strategists pointed out that the market has already priced in more than three rate hikes over the next year, while corporate earnings and balance sheet conditions remain solid.