Artificial intelligence-related stocks are keeping the S&P 500 steady even as market breadth reaches its lowest level since the dot-com bubble, Goldman Sachs said. Strategist Ben Snider said the median S&P 500 stock trades 16% below its 52-week high, while Goldman’s U.S. equity sentiment indicator fell to -0.9, matching its March lows. The index has returned 14% this year, but its forward price-to-earnings ratio declined from 22 times to 19 times, in line with its 10-year average. Goldman attributed the lower multiple partly to rising interest rates and concerns that AI-driven spending is producing unsustainably high profits. Its valuation model indicates the current multiple is consistent with a 22% return on equity, two percentage points below the current level. Goldman’s long/short value strategy has gained more than 25% since mid-last year, although the bank expects weaker performance ahead and recommends focusing on stocks where investors have differentiated views on long-term growth. A related post referenced SPY and QQQ, widely followed exchange-traded funds, and included two supporting links.