Rising Above Recession: Goldman Sachs Anticipates July Rate Hike, Risk Assets Poised To Scale Wall Of Worry
Portfolio Pulse from Piero Cingari
Goldman Sachs has reduced its estimate of the US economy entering a recession over the next 12 months from 35% to 25%. The bank cites the resolution of the debt ceiling dispute and increased certainty about the impact of banking stress on GDP growth as reasons for the change. Goldman Sachs expects a 0.25% interest rate hike in July, followed by steady-high interest rates.

June 06, 2023 | 12:55 pm
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NEUTRAL IMPACT
Goldman Sachs' lowered recession probability and expected interest rate hike may impact the SPDR S&P 500 ETF Trust.
The lowered recession probability may have a positive impact on the overall market, which could benefit the SPDR S&P 500 ETF Trust. However, the expected interest rate hike may have a mixed effect on the market, leading to a neutral short-term impact on the ETF.
CONFIDENCE 75
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
Goldman Sachs lowers US recession probability, which may positively impact the bank's outlook and stock price.
Goldman Sachs' lowered recession probability indicates increased confidence in the US economy, which may lead to more investment opportunities and a positive outlook for the bank. This could result in a short-term positive impact on the stock price.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 100