In This Article:
(Reuters) -Goldman Sachs has trimmed its 2025-end target for the S&P 500 Index to 6,200 from 6,500, citing increased policy uncertainty, particularly on tariffs, and worries about the economic growth outlook.
The target is 10.6% higher than the index's last close of 5,572.07.
On Monday, the S&P 500 saw its steepest one-day drop since December 18, wiping out a staggering $4 trillion from its recent peak.
The index was briefly on track to confirm a correction on Tuesday after U.S. President Donald Trump announced fresh tariffs on Canada. Trump backpedaled on the tariffs later.
"The proximate causes of the market decline are the jump in policy uncertainty largely related to tariffs, concerns about the economic growth outlook, and a positioning unwind, especially among hedge funds," analysts at Goldman Sachs said in a March 11 note.The sharp drop in the index has been largely driven by a 14% plunge in the share prices of the so-called "Magnificent 7" stocks, which saw their price-to-earnings ratio fall to 26x from 30x, they said.
(Reporting by Joel Jose in Bengaluru; Editing by Janane Venkatraman and Mrigank Dhaniwala)