Goldman Sachs' US Sentiment Indicator has reached a significant milestone, hitting +2.3 last week, the highest level since February 2018 and the fourth highest in the dataset's history. This surge in sentiment reflects a notable shift in market dynamics, driven by increased inflows into equities compared to bonds, as well as both active and passive fund inflows. The indicator's current reading suggests a broad sense of euphoria in the US equity markets, as it measures stock positioning among retail, institutional, and foreign investors. Analysts have noted that this sentiment indicator is 'stretched' and indicative of a strong bullish outlook among market participants.