Goldman Sachs Reports Market Breadth Hits Dot-Com Bubble Lows

Peter Callahan, a TMT specialist at Goldman Sachs, reports a significant divergence between record-high index levels and the performance of individual stocks. While artificial intelligence stocks have pushed the Nasdaq 100 to new all-time highs, market breadth has fallen to its lowest level since the Dot-Com Bubble.

Callahan notes that the median stock in the S&P 500 currently trades 16% below its 52-week high. He explains that "while AI strength has kept the headline S&P 500 relatively resilient, the median stock in the index trades 16% below its 52-week high, dragging market breadth to its lowest level since the Dot-Com Bubble."

Despite the resilience of headline indices, the sentiment indicator from Goldman Sachs Private Wealth Management remains in negative territory. This reflects a state of reserved optimism among investors, which is coupled with growing angst and fatigue.