Goldman Traders See ‘Painful’ Path for US Stocks Before Rebound

US equities may need to pull back further before they can mount a durable advance, Goldman Sachs Group Inc.’s trading desk warned, citing fragile sentiment and choppy flows that left the S&P 500 vulnerable after its latest attempt to clear the 7,000 level fizzled.

“The only way up is down from here,” Goldman’s trading desk team including Gail Hafif and Brian Garrett wrote in a note to clients. A broadly supportive macro backdrop has done little to help stocks absorb geopolitical tensions and sharp swings in commodity prices, creating what the bank’s traders called a “painful” near-term path.