Goldman Sachs views DeepSeek market drop as a correction, not a bear market

Goldman Sachs stated that the recent market drop, triggered by the launch of the AI app DeepSeek, is a correction rather than the start of a bear market. They noted that strong macroeconomic conditions remain intact. The market lost $1 trillion on Monday, causing investor concern. However, Goldman analysts believe that the sell-off reflects high valuations in tech stocks rather than a broader economic downturn. They see only a 15% chance of a recession in the next year. Since the decline, investors have shown renewed interest in US tech stocks, viewing them as potentially benefiting from DeepSeek's technology. Despite this, some experts, like Nassim Taleb, warn that further market pullbacks may be on the horizon.