HomeFinancial MarketsDeclining U.S. Growth Could Boost Stocks, Goldman Sachs

Declining U.S. Growth Could Boost Stocks, Goldman Sachs

Goldman Sachs Group analysts believe that a pessimistic outlook on the U.S. economy could actually result in bargain stock prices, thereby fuelling stock purchases. The outlook was dampened after the 10-year Treasury yield rose above 5% for the first time since 2007, thereby placing further pressure on the Federal Reserve to keep interest rates higher for longer.

“Although we expect headwinds to discount rates and balance sheets to persist, we would view a substantial further downgrade to the growth outlook as a buying opportunity,” Goldman Sachs strategists wrote.

The team of analysts is expecting the S&P 500 to end 2023 at 4,500, slightly outpacing the 4,370 average expected among analysts tracked by Bloomberg. The index closed at 4,117.37 on Friday, down 10% from its 2023 peak reach in late July of 4,567.46.

Zoom Tops Estimates, Raises Full-Year Forecast

Zoom Video Communications reported its earnings for the first quarter of 2024 on Monday and topped the estimates of Wall Street analysts. The communications...

Reddit Stock Jumps on the Back of Open AI Partnership

Social media platform Reddit announced earlier this week that it is partnering up with artificial intelligence start-up Open AI to improve the experience of...

Warren Buffett’s Berkshire Hathaway Reveals Its Secret Stock

For the past three regulatory filings, Warren Buffett’s Berkshire Hathaway has been keeping one of its stock holdings confidential. Now, the conglomerate revealed that...