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International Business Times UK
International Business Times UK
Niloy Chakrabarti

Goldman Sachs Expects Market Sentiment To Support Smaller Firms, Sees Upside of up to 165% for Two Biotech Stocks

The rising prevalence of oncology and genetic disorders is driving high demand for genetic therapies. (Credit: Edward Jenner/Pexels.com)

The 2023 bull market, led by large-cap tech stocks, changed momentum this year to benefit smaller companies due to several economic trends, like the slowing rate of inflation growth that is driving up bets on a September rate cut by the US Federal Reserve.

According to TipRanks, Goldman Sachs chief US equity strategist David Kostin cited factors like declining inflation, steady economic growth, heightened market probability of a Republican sweep, and "forecast compression in the EPS growth premium of large-cap stocks vs. peers" that are driving the reversal "against a backdrop of extreme equity market concentration."

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