Goldman Sachs Predicts Continued Stock Sell-Off Pressure from Algorithmic Funds

Goldman Sachs' trading division has indicated that the U.S. stock market, after rebounding last Friday and nearly recovering from a brutal weekly decline, is expected to face further selling pressure from trend-following algorithmic funds this week. According to Jin10, the S&P 500 Index has breached a short-term trigger point, prompting Commodity Trading Advisors (CTAs) to sell stocks. Goldman Sachs anticipates that these systematic strategies, which track market trends rather than fundamental factors, will continue to be net sellers in the coming week, regardless of market direction. Goldman Sachs warns that if the stock market declines again, it could trigger approximately $33 billion in sales this week. Should market pressure persist and the S&P 500 Index fall below 6,707 points, up to $80 billion in systematic selling could occur over the next month. Even in a stable market scenario, CTAs are expected to sell about $15.4 billion in U.S. stocks this week. Furthermore, these funds are projected to sell approximately $8.7 billion even if the stock market rises.