Goldman Cuts S&P 500 Target Again as Gloom Descends Upon Stocks
- Bank lowers forecast for U.S. index for second time in a month
- New target implies marginally negative full-year returns
Stock market information at the Nasdaq MarketSite in New York.
Photographer: Michael Nagle/BloombergGoldman Sachs Group Inc. strategists lowered their target for the S&P 500 index for the second time in a month, implying negative returns for the year, after a global commodity crunch triggered by Russia’s invasion of Ukraine deepened the slump in U.S stocks.
“The larger risk to S&P 500 earnings stems from higher commodity prices, and in turn weaker consumer demand and economic growth,” the strategists led by David Kostin wrote in a note to clients. They revised their year-end forecast for the main U.S. equities benchmark to 4,700 index points, from 4,900 previously. The strategists now expect earnings-per-share to grow an annual 5% to $221 in 2022, down from a previous estimate of 8% growth to $226.