The main index of the New York Stock Exchange has weakened by one percent this year. Analysts at the US investment bank Goldman Sachs think so. This is due to a worse economic outlook as a result of rising commodity prices and the war in Ukraine.
The S&P 500 index will end this year at around 4,700 points. The original estimate of analysts at the US investment bank Goldman Sachs was 200 points higher. This would imply a year-on-year appreciation of about three per cent. However, according to the new forecast, the S&P 500 index will weaken by one percent.
However, this is a comparison of the index’s closing level at the end of last year and the expected level at the end of this year. Compared to current values, this would mean that the main index of the New York Stock Exchange would appreciate by about 12 percent.
The S&P 500 Index has gained 27 percent over the past year. By contrast, it will weaken by more than 16 per cent in 2020. Investment bank Goldman Sachs also downgraded the economic outlook due to skyrocketing commodity and energy prices, but also because of the war in Ukraine. The longer the conflict lasts, the worse the economic impact will be felt and the worse times the stock markets are likely to experience.
