Goldman Sachs Says Market Correction Isn't Over Yet
- Goldman Sachs strategist Peter Oppenheimer states that the market correction is stabilizing but not yet complete.
- There remains uncertainty in the financial markets, causing concern among investors.
- Analysts suggest that further market fluctuations may still occur.
On August 6, 2024, U.S. stock markets experienced a notable rebound, with the S&P 500 rising 1.04%, the Nasdaq Composite advancing 1.03%, and the Dow Jones Industrial Average increasing by 0.76%. This rally ended a three-day losing streak and was characterized by gains across all 11 sectors. The Cboe Volatility Index, often referred to as Wall Street's "fear gauge," also saw a significant decline, dropping to around 27 after peaking at over 65 the previous day. Despite the positive market movement, analysts caution that the correction is not yet complete. Oppenheimer, speaking on CNBC's "Squawk on the Street," indicated that while the market is stabilizing, investors should prepare for continued volatility as they reassess their confidence regarding interest rates and economic conditions. He described the current correction as a "healthy" adjustment following an extended period of market growth. Oppenheimer emphasized that the market is not in a bear phase and suggested that there are still promising investment opportunities available. This sentiment is echoed by Strategas strategist Todd Sohn, who noted that the recent spike in the volatility index could signal favorable conditions for equities in the medium term. Historical data shows that the S&P 500 has averaged nearly a 12% return over the following six months after similar volatility spikes, with a positive outcome in 81% of cases since 1990.