Goldman Sachs President Warns of Further Stock Market Declines Amid AI Investment Concerns

Goldman Sachs President John Waldron has cautioned that equities may face additional downside as investor sentiment turns cautious ahead of Nvidia's earnings report. Speaking at the Bloomberg New Economy Forum in Singapore, Waldron noted technical indicators suggesting further weakness, particularly as markets question whether AI-related investments are delivering tangible returns. The S&P 500 has retreated over 3% this month—its worst performance since March—amid heightened volatility.

Former Barclays CEO Bob Diamond characterized the pullback as a "healthy correction" rather than a systemic threat, though he flagged excessive government spending and debt levels as structural risks. While acknowledging AI's long-term potential to curb inflation and boost productivity, Diamond conceded current market enthusiasm may be outpacing fundamentals. Nvidia's upcoming results now serve as a critical litmus test for the AI investment thesis.