A trader works ahead of the closing bell on the floor of the New York Stock Exchange, June 19, 2019 in New York City.
Drew Angerer | Getty Images
Government policy uncertainty and a poor earnings outlook will keep the stock market from rallying any further this year, according to Goldman Sachs.
Low interest rates have boosted U.S. equity valuations this year, bringing the S&P 500 to record highs, and investors are hoping long-term yields dropping even more will lead to even higher stock prices. But the market’s growth will stop just a little bit higher from here, Goldman Sachs said in a note to clients.
“Although our rates strategists forecast the 10-year US Treasury yield will fall to 1.75% by year-end, we expect lingering policy uncertainty and negative revisions to 2020 EPS will limit equity upside,” said Goldman Sachs’ chief U.S. equity strategist David Kostin.
The stock market has been on a tear this year with the S&P 500 up more than 18% since January and closing at an all time…