Goldman Sach's notes that S&P 500 is moving towards record highs with another correction unlikely in the near term.
The S&P 500 breached 5,900—a level long seen as resistance and a magnet for “buyers who live higher”—and sits just 3.1% below its all-time peak of 6,144, J.P. Morgan's Markets Intelligence group wrote. The broader index has climbed 19.6% since its April 8 low, led by a 30.5% rally in the Magnificent 7.
J.P. Morgan remains tactically bullish, citing lighter correction risk thanks to strong earnings momentum and positive positioning trends. Yet the desk flags three potential pullback catalysts: an Nvidia (NVDA, Financial) earnings miss, stalled or negative U.S.-China trade developments—which previously lifted markets by 10% on surprise progress—and a slowdown in retail buying, completed short covering by macro hedge funds, and muted foreign inflows.
Despite these headwinds, markets appear comfortable marching higher as momentum players and ETF flows continue to dominate. Investors are advised to stay long but vigilant, balancing exposure to secular growth drivers against event-driven volatility.
Why It Matters: With the S&P 500 poised to test new highs, portfolios may need to tilt toward growth leadership while keeping an eye on tech earnings and trade headlines.
Investors will be watching Nvidia's upcoming results and U.S.-China trade talks in the coming weeks for fresh cues on whether the rally can extend.
