Goldman says major stock investors will be reluctant to buy with second wave threat, election ahead

An artist name Theodore Tsinias who wrapped himself next to the Charging Bull to show his attention about world's behavior amid Covid-19 pandemic in Lower Manhattan, New York City, United States on May 25, 2020.
Tayfun Coskin | Anadolu Agency | Getty Images

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Just as the historic rally started to show signs of exhaustion, Goldman Sachs warned that the market's major buyers are now less likely to offer their support due to the uncertainty surrounding the pandemic and the political landscape.

"We expect the potential risk of a viral 'second wave' and the fast-approaching US presidential election will limit a significant increase in equity exposures in the near term," David Kostin, Goldman's head of U.S. equity strategy, said in a note.