Goldman Sachs warns of a hidden bear market in U.S. stocks, with about 60% of S&P 500 constituents in a bear market

Goldman Sachs trader Bobby Molavi pointed out that although the S&P 500 index is only about 3% away from its all-time high, approximately 60% of its constituent stocks have fallen into bear market territory. Molavi stated that the capital expenditures of tech giants driving up artificial intelligence-related stocks have simultaneously caused the stocks of companies accepting these investments to decline, creating a "hidden bear market."

Investors have pulled out of related stocks due to concerns about the sustainability of artificial intelligence spending, leading to a large-scale rotation in the market, with tech stocks suffering heavy losses in recent weeks.