Goldman Sachs warns of potential stock market correction due to high valuations and tariff uncertainty

Goldman Sachs has expressed concern about a potential stock market correction due to high valuations and a challenging macroeconomic environment. The firm noted that uncertainty is increasing from ongoing tariffs between the U.S. and its trading partners. Recent tariff announcements have contributed to market volatility. China has imposed new tariffs on U.S. imports, while the U.S. has paused tariffs on Canada and Mexico for 30 days. This back-and-forth is creating more uncertainty. In response, Goldman Sachs is focusing on protective measures against market downturns. The firm plans to use options, the dollar, and gold to hedge against potential risks in the coming months.