Goldman Sachs analysts have reduced their forecast for the S&P 500 due to uncertainties surrounding the Trump administration’s tariffs and recent economic conditions. The analysts now project the benchmark index to reach 6,200 by year’s end, down from the previous forecast of 6,500, representing an 11% premium over the Tuesday close. This adjustment implies a growth rate of only 5% from the end of 2024, compared to the earlier forecast of 10.5%. \nThe market decline has been attributed to increased policy uncertainty, primarily related to tariffs, concerns about economic growth, and unwinding positions, especially among hedge funds. Goldman Sachs analysts referred to seven underperforming stocks as the ‘Maleficent 7,’ which have collectively dropped about 14% over the last three weeks. Excluding these stocks, the S&P 493 has declined by just 1%. \nThe analysts cited slower expected growth in corporate earnings and GDP due to rising tariffs, heightened uncertainty, and tightening financial conditions. They recommended investing in stocks insulated from major drivers of market volatility. — news from Investopedia
