Goldman Sachs cuts 2022 target for S&P 500 by 16%

Goldman Sachs has cut its year-end 2022 target for the benchmark S&P 500 index by about 16% to 3,600 points, as the U.S. Federal Reserve shows little signs of stepping back from its aggressive rate-hike stance.

Analysts at Goldman Sachs wrote in a note on late Thursday that the expected path of interest rates by the central bank is now higher than it had previously expected leading it to cut its target.

"The forward paths of inflation, economic growth, interest rates, earnings, and valuations are all in flux more than usual with a wider distribution of potential outcomes," Goldman analyst David Kostin said.

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