[Goldman Sachs Trading Head: U.S. Stock Market Remains Highly Challenging, Recommends Simplifying Positions and Buying Gold on Dips] BlockBeats News, July 26, Goldman Sachs hedge fund business head Tony Pasquariello stated that the U.S. stock market is currently experiencing significant internal divergence, with momentum factor volatility remaining elevated, making the market environment 'still highly challenging.' He advises investors to simplify their portfolios and concentrate risk on their highest-conviction positions. Although the S&P 500 Index has shown limited overall volatility, the gap between individual stock and index implied volatility continues to widen, indicating that demand for single-stock options and dispersion trading remains high. Pasquariello has turned positive on gold. He believes that since 2026, a large number of speculative long positions have been cleared out, central bank gold purchases have resumed, and gold prices have repeatedly found support near $4,000. While rising U.S. interest rates and a strengthening dollar may pose short-term pressure, this creates an opportunity for investors to establish structural long positions on dips. The long-term logic is primarily based on the continued rise in global government debt burdens. In terms of AI, related credit supply has reached $489 billion this year, with major spenders continuing to expand investments. However, the market still needs to confirm whether massive AI capital expenditures can translate into revenue growth. Google Cloud's revenue grew 82% year-over-year, but the link between capital expenditures and revenue growth remains unclear. The upcoming earnings reports from Microsoft, Meta, and Amazon will serve as the next round of tests. Pasquariello also pointed out that rising Federal Reserve rate hike expectations and the situation in Iran could exacerbate U.S. stock market volatility. Brent crude oil has risen 33% this month, and the expansion of conflict into regions like the Red Sea has further complicated the situation. On the liquidity front, the impact of earlier large financing deals has largely been absorbed, and with earnings season nearing its end, stock buybacks are expected to accelerate significantly in August.