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2026-11-03 23:26:25
Goldman Sachs Warns of a "Hidden Bear Market" in US Stocks; Approximately 60% of S&P 500 Components Already in Bear Market Territory. The S&P 500 is only about 3% away from its latest all-time high, but approximately 60% of its components are already in bear market territory. Goldman Sachs trader Bobby Molavi points out that this market situation is quite astonishing. He states that the "strange thing" is that the capital expenditures of tech giants driving up AI-related stocks, and the stocks of companies receiving these investments, are both falling simultaneously. Molavi, head of execution services for Europe, the Middle East, and Africa at Goldman Sachs, wrote in a client report: "I don't understand why both sides are being punished by the market at the same time, especially when the fundamental expectation is that AI will change everything." He describes the current market situation as a "hidden bear market." As investors withdraw from related stocks due to concerns about the sustainability of massive AI spending, a large-scale market rotation has occurred, with tech stocks suffering heavy losses in recent weeks. On the other hand, most S&P 500 components have still risen over the past month, with funds shifting from crowded trading areas to defensive sectors and previously under-allocated areas.
