Goldman Sachs says the risk of stock-market decline has suddenly spiked

Goldman Sachs says the risk of stock-market decline has suddenly spiked

JOHANNES EISELE/AFP via Getty ImagesThe stock market's risk of a correction has risen, Goldman Sachs says. The bank said a particular market gauge is flashing an elevated risk of an S&P 500 drawdown.That's because market volatility remains low, but the economy will likely face more tariff headwinds. The stock market's hot streak might soon come to an abrupt end, Goldman Sachs said. In a note to clients, the bank said that its equity asymmetry fr…

Goldman Sachs said there’s a higher risk of a stock market correction in the coming months

Goldman Sachs has revealed that there’s a high chance the stock market could reverse in the coming months due to economic uncertainty. The bank also referred to its equity asymmetry framework, which indicated that the risk of a drop in the stock market had increased. The financial institution uses the equity asymmetry framework to measure stocks based on the market environment and the latest economic data. The analysts said the model showed that…