News

A macro trader at Goldman Sachs stated that investors need to remain vigilant over the next 12 months to identify which economic data may pose a threat to this round of record stock market gains. Paul Chavone from the firm pointed out that employment market data will play a key role in warning about economic cracks. He cited data from the New York Federal Reserve, which shows that although the probability of unemployment remains low, the chance of unemployed workers finding new jobs is only 45%, the lowest valuation on record. The S&P 500 index reached a new all-time high on Wednesday. However, the U.S. labor market, fiscal spending, and the market's potentially overly optimistic sentiment regarding artificial intelligence have raised caution among some seasoned market participants. Chavone previously stated that the market is underpricing recession risks. "I won't short the bubble too early, but I also won't ignore the cracks," he wrote