Goldman Trader Urges Stock Investors to Watch for Cracks in Data

A Goldman Sachs Group Inc. macro trader said investors need vigilance in the next 12 months to identify which economic data pose a threat to the record-breaking equity rally.

The bank’s Paolo Schiavone said labor market readings will be pivotal in providing warnings of cracks in the economy. He cited an example from the New York Federal Reserve that workers losing their jobs — still a low probability for now — have only a 45% chance of finding a new one, the weakest ever estimate.

The S&P 500 notched its latest record on Wednesday. However, fresh concerns about the US ...