The Standard & Poor’s 500 Index may fall to 1,100 if the U.S. debt-reduction supercommittee fails to reach an agreement on budget cuts, according to Goldman Sachs Group Inc.’s David Kostin.
Kostin, the New York-based strategist for Goldman, said in a note dated Nov. 18 that lawmakers’ failure to agree on at least the minimum required savings would demonstrate “the inability of elected officials to act in the long-term best interests of all Americans” and may send the S&P 500 down 9.5 percent from last week’s closing level.
