Goldman's Waldron Sees 'Healthy' Markets Pullback

Market Overview - Current market pullback is viewed as healthy after significant gains this year, particularly in U.S. equity markets focused on AI dynamics [1][3] - Anticipation surrounding Nvidia's earnings is critical, as it may indicate whether the market's expectations for returns on capital invested in AI are justified [1][3] Labor Market Concerns - Labor issues remain a major concern for investors, especially following the recent government shutdown, which has created uncertainty in labor statistics [2][3] Inflation Impact - Inflation continues to be a stubborn issue, influencing market sentiment and investor behavior [2][3] Market Sentiment and Technical Analysis - Investors are currently pulling back to protect gains, indicating a potential need for market correction [3][4] - Technical indicators suggest a bias towards further market protection and downside risk, with increased short activity and macro hedging [4]