The US stock market has been hit hard by the Trump administration’s tariff war, with egg prices soaring by nearly 59% from last year and the S&P 500 gauge plummeting over 9%. Goldman Sachs strategists have cut their target for the index to $6,200, citing reduced GDP growth forecasts, higher assumed tariff rates, and increased market uncertainty. The bank’s analysts also trimmed their earnings growth forecast to 7%, down from 9%, and reduced their expected price-to-earnings multiple by 4%. This move reflects growing skepticism about the Trump administration’s economic policies, with many experts warning of a potential recession or stagflation. Despite this, some analysts remain bullish on European stocks, with one team at Goldman Sachs raising its earnings-per-share growth forecast to 4% for 2025 and 6% for 2026 and 2027.
Source: https://www.thestreet.com/investing/stocks/goldman-sachs-revamps-s-p-500-target-after-tumble