Goldman Sachs updates its S&P 500 year-end target, reflecting current economic concerns. Discover the implications for investors.
Goldman Sachs has once again revised its year-end target for the S&P 500, lowering it from 6,200 to 5,700 due to escalating recession risks and ongoing uncertainties surrounding tariffs. This adjustment, the second within a month, underscores mounting worries about slowing economic growth and eroding investor confidence.
The investment bank’s revised target, which stands among the lowest forecasts on Wall Street, mirrors apprehensions over the possible ramifications of a deteriorating economic landscape. Strategists at Goldman Sachs caution that valuations could potentially decline further should economic conditions continue to worsen.
This downgrade is part of a broader market adjustment prompted by the trade tensions, particularly with the impending announcement of new tariffs by President Donald Trump scheduled for April 2. In light of these developments, Goldman Sachs has altered its tariff projections, now anticipating a 15 percentage point increase in US tariffs by 2025. Additionally, the bank has lowered its 2025 GDP growth forecast to 1 percent, reflecting the expected impact of these tariffs on economic activity.
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