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,