Goldman Brands Tech Giants ‘Malevolent Seven’ While Slashing S&P Forecast

Goldman Sachs has cut its year-end target for the S&P 500 from 6,500 to 6,200 points. David Kostin, chief U.S. equity strategist at Goldman Sachs, announced the revision on March 11 amid growing economic concerns.

The bank now refers to the once-celebrated “Magnificent Seven” tech companies as the “Malevolent Seven.” This dramatic renaming reflects their recent poor performance. The group includes Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia, and Tesla.

These tech giants have collectively plunged 14% over the past three weeks. Their steep decline accounts for more than half of the S&P 500’s 9% drop from its February peak. This reversal stands in stark contrast to their stellar 2024 performance.

The market experienced its worst day of 2025 on March 10. This sharp selloff wiped out approximately $4 trillion in market value. Tesla suffered the most, plummeting 15% in a single day and losing 50% of its value since December.

Nvidia continues its downward trend as well. The AI chip maker has shed $1 trillion from its record market capitalization reached last year. Other tech leaders face similar pressure, with their price-to-earnings ratios falling from 30x to 26x.

Goldman Sachs Lowers 2025 Growth and Earnings Forecasts

Goldman also reduced its GDP growth forecast for 2025 from 2.2% to 1.7%. This economic slowdown led the bank to cut its earnings growth estimate from 9% to 7%. They now project S&P 500 earnings per share at $262 for 2025, down from $268.

Several factors drive the market decline. President Trump’s aggressive tariff policies create uncertainty. He recently announced 25% tariffs on steel and aluminum imports, later walking back some measures against Canada.

Economic growth concerns weigh heavily on investor sentiment. A positioning unwind among hedge funds adds further pressure. Many investors now question the sustainability of tech valuations.

Despite these challenges, Goldman still projects an 11% price increase for the remainder of 2025. This forecast starts from a lower baseline due to recent market turmoil. The target represents a 10.6% rise from the S&P 500’s March 11 close of 5,572.07.