Goldman Sachs’ Tony Pasquariello said stocks no longer look as attractive after recent gains. The S&P 500 ended its eight-day winning streak on Tuesday, marking a pause in August’s recovery rally from a rocky start. Pasqualillo, the firm’s global head of hedge fund client coverage, said surprisingly strong corporate and retail buying after the recent turmoil could mean gains were capped. For example, as of Tuesday’s close, Nvidia was up more than 40% from its August 5 intraday low. Meanwhile, the S&P 500 is up about 9% from its intraday low on Aug. 5, when it had its worst trading day since 2022 amid a global market selloff. “The risk/reward in the market right now is not that attractive,” Pasquarillo said Tuesday on CNBC’s “Closing Bell.” “The market has done a lot in the last eight or nine days.” NVDA 1M mountain Nvidia In particular, he expects the setup for big tech to be tighter than it has been over the past year. While he said the so-called Big Seven stocks will continue to have “good stories,” he expects results to expand. “Relative to the hottest moments in June or July, I think the (big tech) space has lost some of its luster,” he said. “Why? Because the eye-popping nature of these beats is a little less than it was a year and a half ago.” He added: “If the Big Seven deliver 18% earnings growth next year on top of buybacks and capex, I still think that’s “It’s a good story.” “It’s just a more demanding setup than before.” Overall, though, Pasquarillo was optimistic about the outlook for the stock market, citing better-than-expected earnings growth and solid domestic production. Gross growth and the start of interest rate cuts will boost stocks.
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