A pickup in economic policy uncertainty is contributing to an increase to almost 30% in the risk of a drawdown in U.S. stocks, according to Goldman Sachs. The risk is below previous peaks, but well above its unconditional level reached in September,

This was the stock's second consecutive day of losses.

The stock market is facing three challenges that could make a sharp decline more likely in 2025, according to Goldman Sachs.

Goldman Sachs has extended its gold price forecast to $3,000 an ounce by mid-2026, up from the previous target. The bank expects fewer cuts by the Federal

Equities are priced for perfection with the S&P 500’s (SP500) rally in prices and having risen 23% last year after a 24% return in 2024, said Goldman Sachs. The rise in stock prices during the past two years has been in the 93rd percentile over same periods in the last 100 years,