The S&P 500 index will end 2022 about 1 percent lower as commodity prices surge and the outlook for global economic growth weakens amid the conflict in Ukraine, Goldman Sachs said.
Goldman economists in a note on Friday trimmed their year-end target for the benchmark index to 4,700 from 4,900, which would have implied a nearly 3 percent rise in 2022. Goldman’s target still implies a nearly 12 percent jump for the S&P from current levels.
The S&P 500 had climbed 27 percent last year and 16.3 percent in 2020.
Commodity and energy prices have skyrocketed after Russia’s invasion of Ukraine last month, worsening inflationary pressures for businesses around the world.
Goldman also cut the S&P 500’s 2022 earnings per share estimate to $221 from $226, and to $233 from $240 for 2023.
