Goldman Sachs cuts 2022 target for S&P 500 by 16%

Goldman Sachs cuts 2022 target for S&P 500 by 16%

Goldman Sachs cuts 2022 target for S&P 500 by 16% By Reuters

Breaking News


Economy 16 minutes ago (Sep 23, 2022 06:00AM ET)

(C) Reuters. People wearing masks, following the coronavirus disease (COVID-19) outbreak, are seen near an electronic board showing Dow Jones and S&P 500 stock indexes, at the Lujiazui financial district in Shanghai, China November 9, 2020. REUTERS/Aly Song/File Photo

(Reuters) -Goldman Sachs has cut its year-end 2022 target for the benchmark S&P 500 index by about 16% to 3,600 points, as the U.S. Federal Reserve shows little signs of stepping back from its aggressive rate-hike stance.

Analysts at Goldman Sachs (NYSE:GS) wrote in a note late Thursday that the expected path of interest rates by the central bank is now higher than its previous estimate. Their previous target was 4,300 points.

The benchmark index last closed at 3,758 points.

“Based on our client discussions, a majority of equity investors have adopted the view that a hard landing scenario is inevitable and their focus is on the timing, magnitude and duration of a potential recession and investment strategies for that outlook,” wrote Goldman analyst David Kostin.

The Fed indicated on Wednesday global policymakers would “keep at” their battle to beat down inflation, and hiked U.S. interest rates by 75 basis points for a third consecutive time and signaled borrowing costs would keep rising this year.

Kostin noted inflation has proved more persistent than expected and is unlikely to show clear signs of easing in the near term, leading to even higher estimates of Fed tightening.

Monthly U.S consumer prices had unexpectedly risen in August.

“Most portfolio managers believe that in order to corral inflation the Fed will have to hike rates sufficiently high that it will result in a U.S. recession at some point during 2023,” he added.

Earlier this month, UBS cut its 2022 year-end target for the S&P 500 to 4,000 points.

Goldman Sachs cuts 2022 target for S&P 500 by 16%

Historic tax cuts and borrowing define Britain’s new economic agendaBy Reuters – Sep 23, 2022

By David Milliken and Andy Bruce LONDON (Reuters) -Britain’s new finance minister Kwasi Kwarteng unleashed historic tax cuts and huge increases in borrowing on Friday in an…

ADB head says FX intervention among tools for emerging AsiaBy Reuters – Sep 23, 2022

By Tetsushi Kajimoto and Leika Kihara TOKYO (Reuters) -Capital controls and currency intervention are among tools emerging Asian policymakers can use if rapid U.S. interest rate…

Russia to spend $6.8 billion from wealth fund on infrastructure projects in 2022By Reuters – Sep 23, 2022

KAZAN (Reuters) -Russia plans to spend 400 billion roubles ($6.8 billion) of its National Wealth Fund money on investment projects this year, on top of the 535 billion roubles it…

Our Apps

Terms And Conditions
Privacy Policy
Risk Warning

(C) 2007-2022 Fusion Media Limited. All Rights Reserved.

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.