Goldman Sachs lowers its S&P 500 target, citing uncertainty, tariffs, and the Mag-7
Mar. 12, 2025 9:54 AM ET
By: Jason Capul, SA News Editor
Goldman Sachs recently lowered its year-end target for the S&P 500 ( SP500) to 6,200, citing heightened market uncertainty, tariffs, and struggles for the Magnificent Seven names as key factors influencing their revised outlook.
“We lower our 2025 year-end S&P 500 index target to 6200 (from 6500) to reflect a 4% reduction in our modeled fair-value forward P/E multiple (20.6x from 21.5x),” Goldman Sachs portfolio strategy research team stated.
“Our revised estimates reflect the recently reduced GDP growth forecast of our US Economics team, a higher assumed tariff rate, and higher level of uncertainty that is typically associated with a greater equity risk premium,” the investment bank added.
Further supporting Goldman Sachs' viewpoint is the push lower in the Magnificent Seven stocks. Over the past three weeks, the S&P 500 has dropped 9% from its record high, with more than half of this decline attributed to a 14% fall in the share prices of the Mag-7" stocks. In contrast, these same stocks contributed to more than half of the S&P 500's impressive 25% total return last year.
Magnificent Seven Stock Performances in 2025
- Meta Platforms ( META) +3.4% YTD.
- Microsoft ( MSFT) -9.7% YTD.
- Amazon ( AMZN) -10.4% YTD.
- Apple ( AAPL) -11.8% YTD.
- Alphabet ( GOOG)( GOOGL) -12.8% YTD.
- Nvidia ( NVDA), -19.1% YTD.
- Tesla ( TSLA), -42.9% YTD.
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