President Donald Trump's tariff fight risks elevating the Federal Reserve's preferred inflation rate to about 3%, according to a new baseline estimate from Goldman Sachs. That's a chief takeaway from

Goldman Sachs has trimmed its 2025-end target for the S&P 500 Index to 6,200 from 6,500, citing increased policy uncertainty, particularly on tariffs, and worries about the economic growth outlook.

Goldman Sachs analysts have lowered their forecast for the S&P 500 this year following a broad sell-off to start this week amid uncertainty around the Trump administration's proposed tariffs and the economic outlook.

The Magnificent Seven — the group comprised of tech stocks Nvidia (NVDA), Alphabet (GOOG, GOOGL), Tesla (TSLA), Microsoft (MSFT), Amazon (AMZN), Meta Platforms (META), and Apple (AAPL) — has been relabeled as the "Maleficent" Seven by Goldman Sachs.

Goldman's chief US equity strategist lowered his year-end price target for the S&P 500, but said there's a path to recovery for stocks.

Goldman Sachs is the latest economic forecasting team to downgrade its outlook as Trump's tariffs are expected to weigh on growth and boost inflation.