Goldman Sachs cuts 2022 target for S&P 500 by 16%

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Goldman Sachs has cut its year-end 2022 target for the benchmark S&P 500 index by about 16% to 3,600 points, as the U.S. Federal Reserve shows little signs of stepping back from its aggressive rate-hike stance.

Analysts at Goldman Sachs wrote in a note on late Thursday that the expected path of interest rates by the central bank is now higher than it had previously expected leading it to cut its target.

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“The forward paths of inflation, economic growth, interest rates, earnings, and valuations are all in flux more than usual with a wider distribution of potential outcomes,” Goldman analyst David Kostin said. (Reporting by Aniruddha Ghosh in Bengaluru; Editing by Anil D’Silva)