AI Boom May Be Priced in, Says Goldman Sachs—Is a Worse Pullback on the Way?

Core Viewpoint - The recent volatility in the stock market has raised concerns about the sustainability of returns, particularly in the context of the AI boom, which Goldman Sachs suggests may already be priced in [1][6]. Group 1: Market Conditions - The S&P 500 has experienced a decline of over 5% from its all-time high, leading to fears of an AI bubble burst [2][6]. - There is uncertainty regarding short-term market performance, with potential for both a rebound led by the Nasdaq 100 or further declines [4]. Group 2: Investment Strategy - Investors are advised to maintain a long-term perspective and not overreact to negative market commentary [2][3]. - High-quality stocks are being sold off due to fear rather than fundamental reasons, indicating potential buying opportunities for long-term investors [5]. Group 3: Earnings Outlook - The upcoming fourth quarter earnings may benefit from a lower performance expectation if the selling trend continues into the next reporting season [6].