Goldman Sachs strategist: US stocks unlikely to enter bear market in next year

Goldman Sachs Group strategists say U.S. stocks are unlikely to enter a bear market in the next 12 months and the economic recovery will continue to support stocks. The team led by Andrea Ferrario believes that even taking into account the risks posed by the presidential election, there is only an 18% chance that the stock market will fall more than 20%. After surging nearly 25% in 2023, the S&P 500 has risen about 20% this year, led by large-cap technology stocks. Although bond yields have risen this month due to doubts about the depth and breadth of the Federal Reserve's easing cycle and uncertainty about the election, evidence of a U.S. economic recovery has kept the rally going. "Stocks should be able to digest higher bond yields as long as they are driven by better economic growth," strategists wrote in the report. Strategists said the economic environment remains friendly despite recent signs of weakness.