Goldman's Snider Sees 'Yellow Flags' in Equities

Goldman Sachs' Ben Snider discusses the narrow breadth of the S&P 500, where the index is at an all-time high but the median stock is 13% below its high, reminiscent of the dot-com era. He sees potential for a broadening rally if geopolitical risks and energy prices recede, and notes that earnings growth is supporting the market despite some margin pressure from higher costs. - S&P 500 at all-time high but median stock 13% below its high. - Gap between index and median is widest in 25 years, similar to dot-com bubble. - Snider sees 'yellow flags' but base case is market broadening if conditions improve. - Earnings growth for median S&P stock is strong at 12% this quarter. - Higher energy costs are pressuring margins in many sectors. - PE multiple is 10% lower than two months ago due to earnings tailwind. - Unprofitable neocloud companies are still attractive in AI boom, but not explicitly tradeable. - Snider emphasizes the earnings-driven nature of the current rally versus the dot-com era.