Goldman Sachs Says S&P 500 Market Breadth at Lowest Since Dot-Com Bubble as AI Stocks Mask Weakness
JH Kim
Summary
- It reported that gains in artificial intelligence-related (AI) stocks are masking broader weakness among companies in the S&P 500 Index.
- It said the median S&P 500 stock is trading 16% below its 52-week high and that investor positioning has also dropped sharply.
- Goldman Sachs said stocks that have lagged the rally may narrow the gap if macroeconomic uncertainty eases.
Forecast Trend Report by Period
Strength in artificial intelligence-related stocks is masking broader weakness across the companies in the Standard & Poor’s 500 Index, according to Goldman Sachs. Market breadth, a measure of how widely gains are shared, has fallen to its lowest level since the dot-com bubble.
Walter Bloomberg reported on September 28 that the median S&P 500 stock is trading 16% below its 52-week high.
Investor positioning has also dropped sharply, widening the performance gap between a handful of large AI-related stocks and the rest of the market.
Goldman Sachs projects that stocks left behind in the rally could narrow the gap if macroeconomic uncertainty eases.
JH Kim
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