European equity markets have had a strong start to the year, outperforming their peers on the other side of the Atlantic. Even after the rally, Goldman Sachs Research expects European equities to rise as much as 6% in the next 12 months. Strong fourth-quarter corporate earnings, higher defense spending, and a lack of direct tariffs targeting Europe from the US appear to have contributed to the surge in stocks...

US stocks have been buffeted in recent weeks. Goldman Sachs Research reduced its forecast for the S&P 500 Index to reflect our economists’ estimates for slower GDP expansion, higher tariffs, and an overall uptick in uncertainty. The S&P 500 is expected to rise to 6200 by the end of the year, down from an earlier forecast of 6500. This suggests an increase of about 7% in the price of the...

Recent declines in US stocks were driven by high investor expectations at the beginning of the year as well as concerns about weaker economic growth and uncertainty created by President Donald Trump’s tariff announcements. Even after the drop, the S&P 500 might be vulnerable to deeper declines, according to Goldman Sachs Research. US stocks fell in early March, with the S&P 500 posting a correction (a drop of...