Despite a recent 5% drop in the U.S. stock market, Goldman Sachs believes this is just a normal seasonal dip during AI investment cycles, not the beginning of a decline. Their analysis suggests that the market’s pullback may only be temporary. Traders at Goldman Sachs point to several factors driving this optimism: favorable seasonal trends, early stages in the AI investment cycle, and low institutional involvement which indicates potential for further growth before year-end. Shreeti Kapa, a trader at Goldman Sachs with expertise in fixed income, foreign exchange, and commodities, emphasized that a 5% dip during typical year-end fluctuations is expected, following a strong rebound from lows seen earlier in the year.