Goldman Sachs Trader Warns: U.S. Stock Sell-Off Not Over Yet

According to Jinshi Data on February 9, Goldman Sachs Group's trading desk stated that after U.S. stocks rebounded last Friday, nearly recovering the brutal losses of that week, they will face more selling pressure from trend-following algorithmic funds this week.

The S&P 500 index has broken through short-term trigger points, prompting Commodity Trading Advisors (CTAs) to sell stocks. Goldman Sachs expects that regardless of market direction, these systematic strategies that track market movements rather than fundamentals will remain net sellers in the coming week. Goldman Sachs said that if the stock market falls again, it could trigger about $33 billion in selling this week. If market pressure persists and the S&P 500 index falls below 6707 points, there could be up to $80 billion in systematic selling over the next month. Under stable market conditions, CTAs are expected to sell about $15.4 billion in U.S. stocks this week, and even if the market rises, these funds are still expected to sell about $8.7 billion.

U.S. stocks won't start the rotation game too, will they? Which ones will be next, and will it also affect consumption?