S&P 500 Will Sink as Trump’s Tariffs Hit Earnings, Goldman’s Kostin Warns
Published On Feb 3, 2025, 4:39 AM
According to Goldman Sachs strategist David Kostin, the recent announcement of tariffs by the Trump administration is likely to lead to a 5% decline in US stocks. The 25% tariffs on imports from Mexico and Canada, along with a 10% tariff on China, could reduce S&P 500 earnings forecasts by about 2% to 3%. Investor sentiment may dip significantly due to the anticipated negative impacts on corporate earnings and economic conditions, raising concerns over a potential trade war.
Stock Forecasts
SPY
Negative
Given the negative implications of the tariffs on earnings, and the potential for a broader economic slowdown, investors should be cautious. Considering these factors, the market may see a downturn in the short to medium term.
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