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Goldman Sachs strategists have lowered the ROI target for the S&P 500 Index due to the slowdown in growth.
Goldman Sachs stated that increased tariffs, weak economic growth, and higher than previously expected inflation mean that the ROI for U.S. stocks will decline. Led by David Kostin, the firm's strategists have lowered the S&P 500 Index's 3-month and 12-month ROI forecasts from +0% and +16% to -5% and +6%, suggesting that the S&P 500 Index will be at 5,300 and 5,900 points, respectively. The forecast for EPS growth for the S&P 500 Index in 2025 has been reduced from 7% to 3%, and the 2026 growth forecast has been reduced from 7% to 6%, with EPS expectations of $253 and $269, respectively.
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