Goldman Sachs Says U.S. Equities Show No Systemic Risk Despite Momentum Trading Correction

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According to Rich Privorotsky, head of Goldman Sachs' One-Delta desk, the ongoing momentum trading correction in U.S. equities will likely require several more weeks to reach bottom, but the overall stock market shows no signs of systemic risk. Privorotsky's internal momentum models suggest final declines could approach historical median levels. He noted that tracking indicators show relative volatility remains elevated, with no clear signal for market relief yet. The sell-off was partly triggered by new AI models achieving efficiency gains through algorithm optimization rather than sheer computational scale, prompting investors to reconsider the AI capex investment thesis.
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