1. Goldman Sachs cuts S&P 500 forecast by 5% to around 5,300. 2. Stagflation fears increase due to rising tariffs and slowing economic activity. 3. U.S. recession chances now at 35%, up from 20%. 4. EPS growth for 2025 slashed from 7% to 3% due to declining profits. 5. S&P 500 could decline 25% in a recession, potentially dropping to 4,600.
Tariff increases and recession fears negatively affect corporate profits, which historically correlates with a downturn in stock indexes. A similar downturn occurred in 2022 with economic uncertainty impacting valuation.
The article's content directly addresses economic challenges and forecast modifications, which affect market sentiment and S&P 500 performance. The implications of tariffs and economic indicators are critical for investors focusing on the S&P.
Negative impacts are expected in the near-term due to increased tariffs and diminished growth forecasts. In the past, stock prices reflected economic slowdown swiftly following negative news.