Overseas markets are being blasted by Trump tariff worries today. Momentum names in Nvidia (NVDA) and Tesla (TSLA) are getting slammed pre-market. And US markets are taking it on the chin in pre-market trading.
It’s shaping up to be a week, as they would say.
To that end, Goldman’s chief US equity strategist David Kostin cut his three month and 12-month return forecasts for the S&P 500 by 5% and 6%, respectively. That would put the S&P 500 at 5,300 in three months and 5,900 in 12-months.
“Slowing growth and rising uncertainty warrant a higher equity risk premium and lower valuation multiples for equities,” Kostin said.
The team at HSBC is out this morning with a warning the sell-off is likely to persist.
Kostin’s counterpart on the economics team at Goldman Jan Hatzius also lifted his recession probability estimate to 35% from 20% today.
