Goldman Sachs is warning that the AI-driven stock market rally is creating a dangerously concentrated trading environment.
Strategist Ben Snider says the rally, which has pushed the S&P 500 to repeated highs, is tying market performance increasingly to a single theme.
The firm has published an 'insensitive portfolio' of stocks with positive earnings revisions but low sensitivity to AI and economic growth shifts. The list includes Eli Lilly, Reddit, Newmont, Archer-Daniels-Midland, and Casey's General Stores.
Goldman notes that sectors like consumer staples, health care, and real estate show lower correlation to the AI trade. While earnings forecasts have improved for AI-linked companies, estimates outside those areas remain flat. The risk, the bank says, is the market behaving like 'one big trade.'
The insensitive portfolio aims to identify stocks with positive momentum that are less exposed to AI and macro-growth sensitivity.