The revised forecast of 4,900 points constitutes a rNearly 4% cut from estimate from the bank, but is still 11% above Friday’s S&P 500 close of 4,418.64 points.
The benchmark index has been under pressure since the beginning of the year and is already down almost 7.3%, as a number of concerns ranging from increases in interest rates to tensions in Ukraine have made investors nervous and generated volatility in the markets.
“Uncertainty abounds regarding the path of inflation and Fed policy,” Goldman Sachs economists said in a note dated Friday.
US consumer prices rose sharply in January, causing the biggest annual advance of inflation in 40 years. As inflation continues to exceed the Federal Reserve’s 2% target, the central bank is expected to take a more aggressive stance at the start of a cycle of interest rate hikes in March.
Goldman economists expect seven interest rate increases in 2022, but at the same time they see a rise in US stocks as prices rise along with earnings.
“Most of the earnings growth over the next two years will come from sales growth, with only limited net profit margin expansion,” said Goldman economist David Kostin.
Source: Ambito
David William is a talented author who has made a name for himself in the world of writing. He is a professional author who writes on a wide range of topics, from general interest to opinion news. David is currently working as a writer at 24 hours worlds where he brings his unique perspective and in-depth research to his articles, making them both informative and engaging.
