Wall Street Firms Are Slashing S&P 500 Price Targets—Here’s What They Predict For Markets

Wall Street Firms Are Slashing S&P 500 Price Targets—Here’s What They Predict For Markets

Share to Linkedin A majority of Wall Street's biggest firms have recently been slashing their S&P 500 forecasts for this year, predicting lower stock market returns as the Federal Reserve raises interest rates to fight surging inflation and also warning about the economic impact from Russia's invasion of Ukraine. Stock market forecasts for this year are growing steadily gloomier. Barclays is the latest major firm to warn of "limited upside" for stocks lowering its S&P 500 price target on Thursday to 4, 500 from 4, 800—implying a gain of less than 1% from the benchmark index's current levels. The bank predicts a major slowdown in consumer spending that will impact corporate earnings, and in turn dent economic growth and drag markets lower: Combined with the Federal Reserve's aggressive monetary policy tightening, that presents a "dual threat for equities," strategist Jonathan Millar said in a note. Goldman Sachs cited tightening monetary policy and geopolitical tensions after having downgraded its S&P 500 price target twice since early February, most recently to 4, 700—implying a nearly 5% gain for the index. The firm warned that surging commodity prices due to the Russia-Ukraine conflict will likely result in slower economic growth, with analyst David