Market updates and forecasts

Get the latest economic news from ForexMart, including updates on the financial market, central banks' policy announcements, financial indicators, and other relevant news which can have an impact on the industry.

Disclaimer:  Information provided here to retail and professional clients does not contain and should not be construed as containing investment advice or an investment recommendation or an offer or solicitation to engage in any transaction or strategy in financial instruments. Past performance is not a guarantee or prediction of future performance.

Goldman Sachs: S&P 500 growth target to drop to 3,600 by the end of the year


September, 23 2022
watermark Economic news

Investment bank Goldman Sachs lowered the target of the benchmark S&P 500 index at the end of this year from 4,300 to 3,600 points. The reason for this decision was a sharp change in the forecast of an interest rate increase in the United States, which will inevitably affect the valuation of stocks.


The bank's economists are inclined in favor of a negative scenario: due to the growing likelihood of a recession, the risks in the latest forecast are still shifted downward.


In particular, Goldman analysts envisage a 15-fold price-to-earnings ratio of the S&P index compared to the previous 18-fold. At the same time, it is predicted that the US Federal Reserve will again raise the discount rate by 75 basis points in November, then by 50 bps in December and by 25 bps in February at a peak of 4.5-4.75%.


In this scenario, corporate earnings will shrink, the yield gap will widen, and the benchmark stock index will fall to a minimum of 3150 points. The current value of the S&P 500 is 3.687.


However, the option of index growth is not excluded, but only if inflation finally goes down.


Feedback

ForexMart is authorized and regulated in various jurisdictions.

(Reg No.23071, IBC 2015) with a registered office at Shamrock Lodge, Murray Road, Kingstown, Saint Vincent and the Grenadines

Restricted Regions: the United States of America, North Korea, Sudan, Syria and some other regions.


© 2015-2024 Tradomart SV Ltd.
Top Top
Risk Warning:
Foreign exchange trading carries a high risk of losing money due to leverage and may not be suitable for all investors. Before deciding to invest your money, you should carefully consider all the features associated with Forex, as well as your investment objectives, level of experience, and risk tolerance.
Foreign exchange trading carries a high risk of losing money due to leverage and may not be suitable for all investors. Before deciding to invest your money, you should carefully consider all the features associated with Forex, as well as your investment objectives, level of experience, and risk tolerance.