Goldman Sachs: The US stock market rally is s…

According to BlockBeats, on July 2nd, Goldman Sachs' market strategy team believes that the US stock market rally remains heavily reliant on AI infrastructure. While the S&P 500 continues to hit new highs, the driving forces behind the index are uneven, with AI-related sectors remaining the most important engine. In a client note, Goldman Sachs' Tony Pasquariello stated that if the S&P 500 closes above 7530 points by the end of the year, it will achieve four consecutive years of double-digit gains. This is extremely rare in index history; the last time a similar performance was seen was during the tech bull market of 1995-1999. However, this rally is highly concentrated. Goldman Sachs data shows that the strongest performing sectors this year are primarily AI infrastructure. Related sectors such as memory chips, data centers, and AI semiconductors have significantly outperformed the broader market. This indicates that the market is not experiencing a broad-based rally, but rather is driven by a group of stocks most directly related to AI capital expenditure. This structure has two sides. On the positive side, as long as expectations for AI orders, profits, and capital expenditure continue to materialize, the market will still have upward support. AI infrastructure is not only driving up tech stocks but has also spread to sectors like power equipment, industrials, materials, and data center real estate. On the downside, the more reliant an index is on a few key themes, the more sensitive the market becomes to changes in AI expectations. Goldman Sachs believes that AI remains a core driver of US stock market growth, but it is also a potential source of volatility. If investors continue to believe that AI capital expenditures will translate into profits, the concentrated rally can continue; however, if the market begins to question returns, the most crowded AI infrastructure stocks may be the first to come under pressure, dragging down overall market risk appetite.

Goldman Sachs: The US stock market rally is still supported by AI infrastructure, but it is also a potential source of volatility.

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