News
Goldman Sachs Raises S&P 500 Forecast After US and China Agree To Lower Tariffs
Key Takeaways
Goldman Sachs analysts are growing more bullish on the S&P 500 's growth prospects after the U.S. and China agreed to pare back tariffs on each other's imports for 90 days.
The analysts said they now expect the S&P 500 to grow 1% over the next three months to about 5,900 points, up from its previous projection of 5,700. Over the next 12 months, the bank calls for 11% growth to roughly 6,500 points, up from a prior forecast of 6,200.
Goldman pointed to “lower tariff rates, better economic growth, and less recession risk than we previously expected,” for the shift. The Trump administration’s agreement with China will reduce the levy on Chinese imports to 30% from 145% by Wednesday, while Beijing's tariffs on U.S. goods will drop to 10% from 125%.
The S&P 500 was up about 0.8% in recent trading and has added 4% this week so far amid optimism about easing tariffs. Follow Investopedia's coverage of today's live markets news here .
Read the original article on Investopedia