Goldman Sachs has warned that the U.S. stock market may face continued selling pressure from trend-following algorithm funds this week. Despite a recent rebound, the S&P 500 index has broken a short-term trigger point, prompting commodity trading advisors (CTAs) to sell stocks. Goldman Sachs anticipates that these systematic strategies, which focus on market trends rather than fundamentals, will remain net sellers regardless of market direction.
The firm estimates that if the stock market declines again, approximately $33 billion in selling could be triggered this week. Should the S&P 500 index fall below 6707 points, systematic selling could reach up to $80 billion over the next month. In a stable market scenario, CTAs are expected to sell about $15.4 billion in U.S. stocks this week, with sales of around $8.7 billion anticipated even if the market rises.
Goldman Sachs Predicts Continued US Stock Sell-Off Due to Algorithmic Trading
Disclaimer: The content provided on Phemex News is for informational purposes only. We do not guarantee the quality, accuracy, or completeness of the information sourced from third-party articles. The content on this page does not constitute financial or investment advice. We strongly encourage you to conduct you own research and consult with a qualified financial advisor before making any investment decisions.
