Investment bank Goldman Sachs (GS) has become the first Wall Street firm to lower its year-end target on the benchmark S&P 500 index as the selloff in U.S. equities continues.
Goldman Sachs cut its year-end S&P 500 target to 6,200 from 6,500. If the new target proves accurate, it would represent only a 5% gain for the leading index. While several other Wall Street banks and brokerages have issued caution on U.S. stocks, none have cut their outlooks for the market.
U.S. markets have been roiled by the Trump administration’s tariffs on imports from China, Canada and Mexico, as well as signs that the U.S. economy is slowing down. The S&P 500 is down nearly 8% in the past month and nearly 10% below a record high set in February of this year.
Maleficent 7
The S&P 500 is currently near a correction, defined as a decline of 10% or more from recent highs. Leading the way lower have been technology stocks, notably the so called “Magnificent Seven” mega-cap tech stocks that include Nvidia (NVDA), Apple (AAPL) and Microsoft (MSFT), among others.
In downgrading the S&P 500 outlook, Goldman Sachs Chief U.S. Equity Strategist David Kostin remarked that the Magnificent Seven has turned into the “Maleficent 7,” highlighting that, as a group, the technology stocks have declined 14% over the past month.
The stock of Goldman Sachs has declined 18% in the last 30 days.
Is GS Stock a Buy?
The stock of Goldman Sachs has a consensus Moderate Buy rating among 15 Wall Street analysts. That rating is based on 11 Buy and four Hold recommendations assigned in the last three months. The average GS price target of $675.00 implies 25.28% upside from current levels.
Read more analyst ratings on GS stock
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