(Bloomberg) — Goldman Sachs Group Inc. strategists lowered their target for the S&P 500 index for the second time in a month, implying negative returns for the year, after a global commodity crunch triggered by Russia’s invasion of Ukraine deepened the slump in U.S stocks.
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“The larger risk to S&P 500 earnings stems from higher commodity prices, and in turn weaker consumer demand and economic growth,” the strategists led by David Kostin wrote in a note to clients. They revised their year-end forecast for the main U.S. equities benchmark to 4,700 index points, from 4,900 previously. The strategists now expect earnings-per-share to grow an annual 5% to $221 in 2022, down from a previous estimate of 8% growth to $226.
Goldman’s initial year-end target of 5,100 points for the S&P 500 was cut last month, following a rout caused by fears that the Federal…
