Goldman Sachs Says Risk of Major Stocks Drawdown Modest for Now
- Five stocks contributed 51% of S&P 500 returns since April
- Despite narrowing breadth of market rally, risks not elevated
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Goldman Sachs Group Inc. strategists said there’s little reason to expect a major retreat in U.S. stocks in the months ahead, even as the breadth of the rally that has pushed the S&P 500 index into successive records is getting increasingly narrow.
Just five stocks account for 51% of the U.S. benchmark’s returns since April, Goldman’s strategists led by David Kostin wrote in a note to clients. Those same stocks - Apple Inc., Microsoft Corp., Alphabet Inc., NVIDIA Corp., and Tesla Inc. - together account for more than a third of the gauge’s returns this year and more than a fifth of its total market capitalization, according to the strategists.