S& P 500 hits all time highs U.S.-Japan trade deal optimism
Investing.com -- Global equity markets may face a potential sell-off this week, according to data from Goldman Sachs.
The data indicates that commodity trading advisers (CTAs), who bought $103 billion worth of stocks last month, are predicted to be sellers in the coming week, regardless of the scenario. This trend applies globally and particularly in the U.S., as stated by Goldman’s Cullen Morgan in a note to clients.
Morgan also anticipates these CTAs to offload stocks if the market remains unchanged or experiences a downturn over the next month. However, should a rally occur, it could trigger approximately $5.3 billion worth of buying within the same period.
Over the past two weeks, trend-following investors have not been as active in purchasing, following their significant contribution to the stock rebound from the lows of April. With trade and economic risks still posing a threat, these conditions could make the market more susceptible to potential declines in the near future.
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