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Stocks are in free fall.

The S&P 500 is hitting record highs this year and the Dow Jones Industrial Average just had its best week of the year – and its eighth straight winning session last Friday.

But Goldman Sachs still gave some of its favorite stocks more than 50% upside potential and a valuation of more than 100%.

CNBC Pro subscribers can learn more about them here.

— Weizhen Tan

The Federal Reserve is unlikely to cut rates this year, according to Megan Horneman, chief investment officer of Verdence Capital Advisors.

Although Horneman also considers a rate hike unlikely, she believes the US central bank will be forced to keep rates unchanged for the rest of the year as inflation persists.

“This is a problem that they have exacerbated by taking such a dovish tone and – starting last year – letting markets price in numerous rate cuts,” she said. “They really need these markets to be more realistic about where interest rates are going.”

—Lisa Kailai Han

The market has reacted positively to negative economic surprises recently, but Citi believes this “bad news is good news” narrative will soon change.

“Seasonally, surprises tend to fade now, and with Fed rate hikes not expected in the near future, good economic news will likely be welcomed by risky assets,” wrote analyst Nathaniel Rupert.

He added: “However, with cracks appearing in the labor market, lower-than-consensus data would eventually weigh on stocks (although the first decline can be viewed positively), as would a tightening of conditions financial, in our opinion.”

—Lisa Kailai Han

OpenAI’s event on Monday, highlighting its new desktop app and some updates, “raises the bar even higher for consumer chatbots,” according to Bank of America analyst Vivek Arya.

He wrote in a Tuesday note that the event “raises the bar for AI assistants,” adding that semiconductor stocks should benefit from multi-year growth thanks to the necessary computing and networking capabilities to appease the growing use cases of artificial intelligence.

Analyst Wamsi Mohan also highlighted Apple as a potential beneficiary of OpenAI and multimodal assistants, as well as potential productivity gains.

“Much of the demo used a ‘wired’ iPhone to reduce the latency of real-time interaction,” he wrote. “Maintaining GenAI’s purchasing edge with increased gross margin and momentum in services.”

Despite this, Rosenblatt’s Barton Crockett sees the event as a potential competitive pressure point for Alphabet ahead of its Google I/O event. These developments also appear to be turning heads at Apple, which has struggled for years to create similar features for its Siri component, he added.

“We suspect that Apple is far, internally, from what OpenAI has just demonstrated,” he wrote. “If Google cannot demonstrate the ability to match OpenAI on the I/O level, then Apple will be under significant pressure, in our view, to partner with OpenAI to modernize Siri based on the current state of the AI.”

-Samantha Subin