During the sell-off, strategists at Goldman Sachs recommended buying the dip in US stocks, albeit carefully, as they reiterated their year-end S&P 500 price target of 5,600.
Economically sensitive stocks have lagged defensives by at least 5 percentage points in a single week 12 times since 2000, according to Goldman Sachs.
"Despite the weak jobs report, our economists believe continued economic expansion is far more likely than recession," Kostin wrote.
Goldman Sachs found that those micro factors explained 86% of stock returns in the first half of 2024, versus the long-term average of 57%.
Fewer worries about the near-term economic outlook mean stocks will no longer trade in lockstep — a win for active investors.
Persons:
—, Goldman Sachs, David Kostin, Kostin, abate, lockstep —
Organizations:
Service, Goldman, Business, Institute of Supply, Walmart
Locations:
Japan, lockstep, Monday's