A decrease of almost 10% in the S&P 500 (^GSPC) has encouraged Wall Street -stretches to revise their bullish views on the way to 2025.
And late Tuesday evening Goldman Sachs Chief US Equity-Strategist David Kostin became the first big name on the street to reduce their final price objective for the S&P 500 after this decrease, where Kostin reduced its end of the year to 6,500.
“We lower our 2025 S&P 500 index objective 2025 to 6200 (from 6500) to display a reduction of 4% in our modeled Fair value forward p/e-multiple (20.6x of 21.5x),” wrote Kostin and his team.
“Our new index goal suggests a price gain of 11% during the balance of the year, similar to our return estimate at the start of the year, but from a lower starting point.”
Earlier this week, the S&P 500 almost came into the correction area – defined as a decrease of 10% compared to its most recent high – as a fear of the health of the US economy and uncertainty about President Trump’s tariff policy shaking the confidence of investors.
Goldman’s own economic team recently revised its GDP prediction of 2025 to 1.7% of an earlier projection of 2.2%, because the consequences of rates and political uncertainty on the prospects have weighed.
Kostin marked the GDP -Downgrade in its note on Tuesday and said that this slower growth food spelling led to a downward revision in his estimate for S&P 500 profit growth this year to 7% of 9%.
“Our revised estimates reflect the recently reduced GDP growth granting of our US economic team, a higher -assumed rate percentage and a higher level of uncertainty that is generally associated with a greater risk premium for shares,” Kortin wrote.
“Weaker economic activity usually means weaker growth of the business profit.”
Read more: What Trump’s rates mean for the economy and your wallet
Kostin noted a catalyst that improves the prospects of economic growth, or is apparent from stronger economic data or a reduced rate policy plan that could encourage a resource of shares. On Wednesday, perhaps the first sign of better economic data emerged as a softer than expected inflation, the most important stock indexes sent higher on the market.
And although Kostin is perhaps the first strategist to be their end of the year before the S&P in the end of the S&P lower, Kostin is not the only strategist that recently warned that the Poor Vooruit for US shares probably looks different than last year’s predictions.
“We have seen the American stock market on a rocky path higher until the end of the year and have believed that our 6,600 can absorb a 5-10% disposal,” wrote RBC Capital Markets head of the US stock strategy Lori Calvasina in a note to customers on Sunday.
