Goldman Sachs trader Molavi said that the stock market is moving towards a new year with a bullish and bearish confrontation.

Goldman Sachs Group's macro trader Bobby Molavi compares the stock market's situation as the new year approaches to a boxing match, in which artificial intelligence and stimulus measures act as bullish forces that will confront bearish forces such as high valuations and credit pressures. With the S&P 500 index set to record double-digit gains for the third consecutive year, Molavi estimates that the "Big Tech Seven" will inject approximately $600 billion in capital expenditure into the U.S. economy. Additionally, there is discussion about reducing income taxes and issuing $2000 stimulus checks, all of which are in favor of the bulls. According to Molavi, there will be more positive factors to support the bullish view. "Quantitative tightening is ending, deficit spending continues, there is $1.2 trillion in buyback authorization by 2026. We also continue to see retail investors entering the market and buying on dips. Additionally, there will be regulatory easing and capital requirements loosening for the banking sector in 2026," he wrote in a report to clients.