Goldman Sachs Analyst Predicts Small-Cap Stock Rise as Tech Giants Stumble
David Konstin, an analyst at Goldman Sachs, has joined other experts in predicting a potential rise in small-cap stocks. Meanwhile, tech stocks, particularly Nvidia and Nvda, have been experiencing a significant decline.
Konstin's recent study suggests that tech stocks, including Nvidia and Nvda, may continue to fall if they fail to impress in their upcoming earnings reports. This sentiment is shared by other experts like Morgan Stanley and Fundstrat's Tom Lee, who have also expressed positive views on small caps.
The current market dynamics show a clear rotation of capital away from highly valued tech stocks on Wall Street, with Nvidia's stock and Nvda stock being notably affected. Konstin identifies four key factors driving this capital rotation: slowing inflation, stable economic growth, expectations of a Trump re-election, and decreasing growth of large-cap stocks.
If tech stocks, like Nvidia and Nvda, do not improve their performance and earnings outlook, small-cap stocks are likely to rise. Konstin expects this trend to continue if the macroeconomic environment remains stable and mega-cap tech companies report strong earnings.
David Konstin's analysis, along with other experts' views, suggests a potential shift in market dynamics favoring small-cap stocks. The upcoming earnings reports from tech companies, particularly Nvidia and Nvda, will be crucial in determining the direction of the market.
