Goldman Sachs on Monday lowered its outlook on S&P 500 earnings for 2016 and 2017, largely putting the blame on some of the biggest players in Silicon Valley and on Wall Street.

“Financials and information technology, the two largest S&P 500 sectors based on earnings per share contribution, have both registered disappointing operating [earnings-per-share] growth in 2016 year to date,” David Kostin, chief U.S. strategist at Goldman Sachs, said in a note.

As a result, Kostin cut his 2016 estimate for S&P 500 SPX, +1.05% operating earnings per share, or EPS, to $105 from $110 and dropped his 2017 target to $116 from $123.

EPS for the financial sector this year are now expected to grow 1% versus 9% previously as banks struggle in a low interest rate environment, lowering the overall S&P 500 EPS forecast by $2.

Kostin also slashed his 2016 EPS estimates for the technology sector by $2, or 4%, as net margins shrink by 170 basis points while projected EPS for telecom companies are likewise expected to decrease by $2 as low rates raise pension liabilities.

There is some good news.

The energy sector, which had shouldered much of the blame for tepid earnings in recent quarters, may be able to take off its dunce hat on the back of the recent recovery in oil prices.

Energy companies combined will subtract $1 from S&P 500 EPS this year, compared with the $3 hit that Goldman Sachs had originally predicted.

“A rebound in crude oil prices mean that energy write-downs, which have plagued S&P 500 EPS for more than a year, should fade in the second half of 2016,” said Kostin.

December West Texas Intermediate crude CLZ26, -1.13% fell 1% to $50.32 a barrel on Monday but is up 16% year to date.

John Butters, senior earnings analyst at FactSet, said Friday that the S&P 500 would have reported earnings growth in four of the past five quarters if energy companies were excluded. But by the first quarter, the energy sector is likely to be a positive contributor to earnings growth for the S&P 500, he said.

FactSet

Starting 2017, Goldman Sachs expects most of the earnings drag from the financial industry to ease as interest rates are likely to creep higher.

“The futures market currently implies one hike in fed funds during 2017 and an average 10-year Treasury yield of 1.9%,” Kostin said.

The strategist projected the 10-year Treasury yield TMUBMUSD10Y, 0.679% to close out 2017 at 2.5% versus 1.76% currently.

Technology earnings will also recover to grow 8% in 2017 next year, the strongest out of all 11 sectors, as profit margins edge up.

On the whole, Goldman characterizes 2017 earnings as “steady but unspectacular” due to slow U.S. economic growth and profit margins below recent peaks. Excluding the energy sector, S&P 500 earnings are expected to rise 6%, falling short of the average annual S&P 500 EPS growth of 7.5% since 1980.

Despite the subdued forecast, Kostin maintained his S&P 500 targets at 2,100 by the end of the year, 2,200 at the end of 2017, and 2,300 at the end of 2018.

Goldma Sachs

In the longer term, Goldman Sachs expects earnings to increase 5% to $122 in 2018 and 4% to $127 in 2019.

The Wall Street bank’s downbeat outlook comes as the market gears up for a big week of earnings with Apple Inc. AAPL, +1.57% , Alphabet Inc. GOOG, +2.39% GOOGL, +2.07% , and major oil companies Exxon Mobil Corp. XOM, -2.47% and Chevron Corp. CVX, -1.00% scheduled to announce quarterly results.

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As of Friday, blended earnings—a combination of reported earnings and estimates for companies yet to report—indicate a decline of 0.3% for the third quarter, putting the index on track for a sixth straight quarter of earnings drop, according to Butters.