Why Goldman Sachs' Tony Pasquariello doesn't think the market is 'alluring' right now

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'The market's done a bunch of work over the past eight or nine days,' Pasquariello said.

The stock market doesn't look as appealing after its recent rally, says Goldman Sachs' Tony Pasquariello. The S & P 500 snapped an eight-day win streak on Tuesday, marking a pause in a recovery rally from a rocky start to August. Pasquariello, the firm's global head of hedge fund client coverage, said the surprising strength of corporate and retail buying following the recent tumult could mean gains are capped. As an example, Nvidia is up more than 40% from its Aug.

" NVDA 1M mountain Nvidia In particular, he expects that the setup for megacap tech will be more demanding than it had been over the past year. While he said the so-called Magnificent Seven stocks will continue to have a "good story," he expects performance will broaden out. "Relative to the hottest moments of June or July, I think the shine is off the space a little bit," he said.

 

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