Goldman Sachs cuts S&P 500 target, citing Maleficent 7 weakness

00:00 Speaker A

from magnificent 7 to Maleficent seven. That's what Goldman Sachs is saying astir those mega headdress tech stocks successful a enactment retired this greeting here. Goldman noting that the mag 7 are liable for implicit fractional of the S&P 500's moved towards a adjacent correction this week. Goldman besides cutting its extremity of twelvemonth people for the S&P 500 to 6200, that is down from 6500. There you're taking a look astatine immoderate of those magnificent 7 names show versus the S&P 500 and the S&P 493. So, those 7 names benignant of removed from it, but they've revised their basal lawsuit script arsenic good present saying they're expecting a akin instrumentality from a little level. They're lowering that 2025 twelvemonth extremity S&P 500 scale people to 6200 from 6500.

01:26 Speaker B

The merchantability disconnected that we've seen has not been precise wide based. A batch of it has been successful the ample headdress names. So, it it makes consciousness that they're talking astir rebranding the mag seven, not truthful magnificent anymore if they're not going to beryllium liable for the bulk of the marketplace gains. I deliberation it's truly absorbing that they speech astir hedge funds selling disconnected immoderate of their hazard portfolios, that's indicative of a marketplace that could proceed to person unit moving guardant here. They besides speech astir the recessionary outlook, evidently they've accrued their likelihood of a recession, but inactive not pricing successful that arsenic their basal case. They bash expect slower GDP growth, which of people is thing that could measurement connected net moving forward.

02:24 Speaker A

Three things request to hap for eventual trough successful the marketplace to beryllium acceptable here, they say. First, betterment successful the outlook for the US economical enactment owed to either amended maturation information oregon alteration successful tariff policy. Second, equity valuations, cyclical versus defensive. Third, depressed capitalist positioning here.