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Goldman Sachs Lowers S&P 500 Target, Raises Recession Odds. Why It’s Suddenly Worried. - Barron's

1. Goldman Sachs lowered S&P 500 targets and raised recession odds. 2. S&P 500 forecast reduced by 5%, expected to hit 5,300. 3. Year-end inflation forecast increased to 3.5%, above Fed's 2% target. 4. GDP forecast cut to 1% growth, unemployment expected to rise to 4.5%. 5. Goldman maintains long-term S&P rise outlook despite short-term challenges.

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FAQ

Why Bearish?

Goldman's lowered S&P targets and recession odds suggest weaker market conditions, hurting investor sentiment.

How important is it?

Goldman's influence on market predictions can significantly sway investor behavior, making this news quite impactful.

Why Short Term?

Immediate concerns over tariffs and economic forecasts may deter investors in the coming months, particularly until clarity on tariffs emerges.

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