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Goldman Warns Selloff May Intensify as Traders Turn Bearish, Forcing More Selling

  • Two-month stock selloff may intensify as options dealers and fast-money traders turn against the market, warns Goldman's Rubner.

  • Systematic funds at risk of forced selling as indexes break below key thresholds.

  • Market makers stuck in "short gamma" stance, exacerbating swings up and down.

  • No rules market driven by flows over fundamentals to end of quarter, says Rubner.

  • Sees bottom in early Oct, rally by year-end on seasonality and buyback pickup after earnings blackouts.

yahoo.com
Relevant topic timeline:
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The Dow Jones Industrial Average is poised for its worst day in months as the stock market selloff continues, driven by losses in Goldman Sachs, Microsoft, and American Express.
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Investors are reducing their bets on a selloff in US stock futures, although it is uncertain if this marks the end of the downward trend.
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The selloff in Wall Street stocks accelerates as bond market turbulence and Middle East tension weigh on investor sentiment, with even megacap tech companies experiencing significant drops in stock value.
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