David Kostin, Goldman Sachs strategist, is retiring after 31 years. Kostin believes current market valuations are not indicating an AI bubble. He sees potential in consumer, healthcare, and AI-driven companies for revenue growth. VIX readings suggest stability, positively impacting market outlook for 2026. Goldman Sachs targets 7,600 for S&P 500 next year.
VIX rises significantly amid renewed U.S.-China trade tensions. The VIX reached 22.76, highest since May 23. Investors show complacency with summer rally; volatility measures diverge. Signs of market turbulence emerged in late September. Credit market issues could pose a bigger threat than trade tensions.
Goldman Sachs bullish on equities due to favorable macro conditions. Expecting two more Fed rate cuts this year, boosting investor confidence. Low recession risk creates supportive environment for stocks. VIX remaining under 20 implies reduced market fear and volatility. Caution remains over potential drawdowns due to high valuations.
S&P 500 hits 18th record closing high this year. VIX fell below 14.5, lowest since December. Goldman Sachs warns of increased equity drawdown risk. Fed easing could increase market volatility. Inequities in valuations may not reflect economic risks.
Monthly options expiration is unprecedented after a holiday. Over $6 trillion in contracts are set to expire. Triple witching typically leads to high volume and volatility. VIX spiked above 20 due to geopolitical tensions. Market uncertainty may result in erratic trading behavior.