Goldman Sachs says risk of equity drawdown is rising as stocks hit record

Goldman Sachs is warning that the risk of a stock-market pullback is rising as investors' once-strong appetite for risk begins to fade. The bank's strategists said their Risk Appetite Indicator has fallen to a more neutral level of about 0.2, marking a clear deterioration from the "Goldilocks" conditions that supported markets through the summer. While Goldman's economists expect U.S. growth to reaccelerate in 2026, the Wall Street investment bank said the probability of a market sell-off outweighs the odds of a large rally. .SPX YTD mountain S & P 500 year to date "The pick-up in drawdown risk has been driven by elevated equity valuations and a weak U.S. business cycle," the strategists wrote. "Our equity asymmetry framework suggests that the probability of a sell-off is higher than that