Goldman Sachs Warns of Potential Market Correction Following $2.7 Trillion Options Expiration

Unwinding of $9 billion in hedges and slowing investor activity could heighten volatility and trigger a sell-off.

Approximately $2.7 trillion in U.S. equity options expired on Friday, potentially pressuring the stock market if investors do not renew their bets.
Goldman Sachs highlighted that intermediaries holding $9 billion in hedges may need to unwind these positions, which could amplify market volatility.
The S&P 500 and European markets have retreated from record highs earlier this week, influenced by new tariff threats from President Trump targeting key industries.
Seasonal factors, such as reduced retirement fund contributions and retail traders preparing for tax payments, are further slowing stock buying momentum.
Analysts caution that the lack of buyers to absorb the impact of hedge unwinding could lead to a broader market sell-off.