Goldman Sachs warns investors that a Fed rate cut won't do much for the stock market

, if it were to happen, probably wouldn't lead to a big increase in stocks, the chief U.S. equity strategist at Goldman Sachs told CNBC on Tuesday.

"A lot of that rise in the market, in my estimation, is already behind us," said Goldman's David Kostin in aWith the market expecting a Fed rate cut later this month, actually getting one won't do much, he predicted. "What new, incremental information are we going to get to push the market higher? The answer is, not a lot."

"If there was to be a shift from that direction, there'd have to be a lot of jawboning and speechmaking in the next several weeks" before the two-day Fed meeting July 30-31, he added. In the meantime, investors will be looking for clues on rates and the economy this week when Fed ChairmanKostin said Goldman is currently projecting two rate cuts this year due to the Fed's reluctance to go against market expectations.

Against that backdrop, Kostin is sticking with his price target of 3,000 for the S&P 500 by year-end, putting Goldman near the middle of expectations from the Wall Street analysts followed by the

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They are confused.

Folks the Economy May look rosy right now. But it’s not. A recession is likely within the next year. Not sure how bad, but my instinct tell me it’s coming.

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Stocks are dropping as traders fear a shift in the Fed's rate cutting stanceTraders will be listening intently to Jerome Powell's speech at the Boston Fed today for signs the central bank is changing its tune on policy.
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