The S&P 500 just had its steepest two-day drop in more than six years on the back of concerns over growth in China and other global events. However, Goldman Sachs is keeping its price target of 2,100 by the end of the year, and it expects the U.S. economy to avoid contagion.
In a note from Goldman's David Kostin issued on Tuesday morning, the company says it expects economic expansion to continue in important areas such as housing, the labor market, and consumer spending. The team is going to keep a close eye on big data releases next week, including ISM manufacturing and one of the most important job reports in a while. Despite its confidence that spillover effects will be limited, Goldman is recommending stocks that have limited exposure to the global turmoil.