Goldman Sachs CEO: US Stock Pullback Healthy, No Recession Risk, Fed Unlikely to Make Emergency Rate Cuts

Solomon expects one to two rate cuts from the Fed in the fall. He also mentioned that as the market readjusts to new economic data and revises expectations for Fed policy, market volatility will persist for a while. "After a very strong market rally, we are experiencing a correction, which might be healthy. I think we will see more volatility in the short term. This is quite a significant adjustment."

Observing this round of US stock adjustments, Goldman Sachs has drawn seven conclusions. Goldman pointed out that the $.SPX.US$ still has 8% upside potential this year, and the Fed may start cutting rates in September. Large tech stock valuations remain reasonable, while small-cap stocks continue to be under pressure. The US economy will continue to grow, with real GDP growth rates expected to reach 2.7% in 2024 and 2.3% in 2025.