Goldman Sachs has stated that the pullback in technology stocks is a healthy consolidation, and that AI trends may spread to European and bond assets.

The head of asset allocation research at Goldman Sachs Group, Inc. stated that the speculative positions in the technology sector had been climbing continuously, and recently tech stocks as a whole have fallen, which is considered a healthy market phenomenon. In an interview, Mueller-Glissman said, "The impressive gains in the technology sector this round are evident, with momentum stocks significantly rising, backed by increased leveraged ETFs and long positions in options. Therefore, the current market experiencing a period of consolidation and volatility is not necessarily a bad thing." After Broadcom Inc. (AVGO.US) released lower-than-expected guidance, Mueller-Glissman warned that investors should not simply extrapolate the strong cyclical attributes of the technology hardware and semiconductor industries' profit performance. In his opinion, the biggest risk in the current U.S. stock market is investors beginning to question the profit growth logic that supports the strong performance of the technology sector throughout the year. S&P 500 component stocks achieved their strongest profit growth in five years in the first quarter, driven by large technology giants. It is reported that thanks to the performance realization of companies benefiting from the AI industry chain, the overall profit growth of the S&P 500 in 2026 is expected to exceed 20%. Mueller-Glissman added that if the Strait of Hormuz resumes navigation, the main theme of the market growth is expected to move beyond just AI momentum stocks and expand to European stock markets and bond-related assets. He also mentioned that low volatility sectors have significantly underperformed this year compared to momentum growth stocks, due to insufficient technology position allocations and high sensitivity to rising interest rates, leading to extreme divergence in the performance of these two types of stocks.