CNBC Pro

Goldman says market correction risk is rising, but a bear market is unlikely

Traders on the floor of the New York Stock Exchange.
Source: New York Stock Exchange

The major averages have clawed back their coronavirus-induced losses and hit record highs in January, but Goldman Sachs believes a pullback may be coming.

"In our view, there is a risk of a correction," the firm said Tuesday in a note to clients. "Our risk appetite indicator, designed to highlight changes in market sentiment and vulnerabilities to tactical corrections, is at elevated levels suggesting a correction is increasingly likely."

More In Street Calls

CNBC ProThese stocks have major upside heading into the second half, Wall Street analysts say
CNBC ProHere are Friday's biggest analyst calls of the day: Apple, FedEx, Coinbase, Honeywell, Micron & more
CNBC ProEnergy stocks are the best bet in the market right now, says JPMorgan