Goldman Sachs Predicts Continued U.S. Stock Market Growth Despite Recent Decline

According to PANews, Goldman Sachs has assessed the recent approximately 5% decline in the U.S. stock market as a typical year-end seasonal fluctuation within the AI investment cycle, rather than an unusual signal indicating the end of the rally. Goldman Sachs traders have noted that despite the market experiencing a pullback, there remains potential for growth before the end of the year. This optimism is attributed to seasonal factors, the early stages of the AI investment cycle, and relatively light institutional positioning, which together suggest that indices could rise further.Shreeti Kapa, a trader in fixed income, foreign exchange, and commodities at Goldman Sachs, stated that a 5% drop at this time of year is a normal occurrence in the current cycle. She emphasized that although the market has seen a strong rebound since the lows in April, overall, it has not been excessive.