"Growth concerns due to tariff uncertainty"...Goldman Sachs lowers S&P target price

"Largest deleveraging in 4 years"

U.S. investment bank Goldman Sachs has lowered its year-end target for the S&P 500 index from 6500 to 6200, citing Trump's tariff uncertainty and growth concerns.

Goldman Sachs stated this in an investment memo on the 11th (local time), saying, "Hedge funds are liquidating positions as uncertainty in tariff policy surges and concerns about economic growth increase."

Goldman Sachs predicted that "hedge funds' risk reduction seems to be at a midpoint" and "the risk reduction trend may continue further in the future."

According to Goldman Sachs, deleveraging during the last trading day of last week (7th) and the first trading day of this week (10th) was the largest in 4 years. Industrial sectors in particular led this trend.

Reuters anticipated that if deleveraging persists, stock prices could take time to recover, as hedge fund portfolio managers typically unwind trades over extended periods during continued selling to minimize losses.

The S&P 500 index briefly fell into correction territory during trading on the 11th, dropping as much as 10% from its peak, before closing at 5572, down 0.75%, due to late buying. The previous day, the S&P 500 index plunged 2.7%, falling below its 200-day moving average for the first time since November 2023.

Noh Jung-dong, Hankyung.com reporter dong2@hankyung.com