Here's What Goldman's Top Traders Think About The Market After The Worst Week Since April

While stocks are set to blast off on Monday now that the Democrats caved and there is a deal to reopening the government, US equities traded poorly over the past week (NDX -3.0%, worst since April, SPX -1.6% WoW) driven by AI skepticism, renewed economic growth concerns (Challenger / Revelio jobs data, weakening Michigan sentiment survey, ongoing government shutdown) and expectations of less accommodative monetary policy.

Institutional activity suggested more top-down movement, single stock activity very orderly despite magnitude of the moves. LOs finished, -$2bn net sellers (4th consecutive week, ~$8b since mid Oct) while HFs finished +$1.8bn net buyers (aggregate flows flat since mid Oct).