Recently, the U.S. stock market seems to be experiencing a "nightmare" of the "seven giants," with the S&P 500 index being dragged down and nearing a correction, prompting Goldman Sachs to lower its year-end target for the S&P 500 index.On March 11, Goldman Sachs analysts David J. Kostin, Ben Snider, Ryan Hammond, and others released the latest research report, lowering the S&P 500 index's year-end target from 6,500 points to 6,200 points. However, Goldman Sachs stated that if the economy and earnings continue to grow, history shows that corrections in the S&P 500 index are usually good buying opportunities.The Curse of the "Seven Giants": From "Dominating for a Time" to "Fading Away"In the past three weeks, the S&P 500 index has dropped 9% from its historical high, with more than half of the decline stemming from a 14% price plunge in the "seven giants" stocks. Last year, the "seven giants" stocks contributed 25% of the total return of the S&P 500 index.It is noteworthy that over the past 40 years, the median intra-year decline experienced by market-cap-weighted indices has been 10%, which is similar to the recent drop. However, the equal-weighted index (SPW), which represents ordinary stocks, has fallen 6% in the past three weeks and is 8% lower than the historical high set at the end of November last year. Analysts pointed out:"The direct reasons for the market decline are increased uncertainty regarding tariff-related policies, concerns about economic growth prospects, and adjustments in investor positions, especially among hedge funds."Goldman Sachs has lowered its year-end target for the S&P 500 index in 2025 from 6,500 points to 6,200 points. Although the target has been lowered, Goldman Sachs expects that there is still an 11% upside potential for the S&P 500 index for the remainder of this year, similar to the earnings expectations at the beginning of the year, but with a lower starting point.Additionally, Goldman Sachs has also reduced its growth forecast for earnings per share (EPS) in 2025 from 9% to 7%, while maintaining a 7% growth forecast for 2026. The new EPS forecasts are $262 (previously $268) and $280 (previously $288), respectively.Response Strategies in a Recession Scenario: Goldman Sachs' Investment StrategyGoldman Sachs believes that for the market to recover, at least one of the following three conditions must be met: First, there is an improvement in the outlook for U.S. economic activity, which may stem from better growth data or changes in tariff policies; second, stock valuations or the pricing of cyclical stocks versus defensive stocks are significantly below Goldman Sachs' fundamental forecasts; third, investor positions are already at low levels.Goldman Sachs' report also focuses on the potential impact of an economic recession on the U.S. stock market. They noted that since World War II, the median decline in earnings per share for the S&P 500 index during 12 economic recessions has been 13%. During economic recessions, the index typically falls 24% from its peak. However, in the absence of a recession, history shows that if the economy and earnings continue to grow, declines in the S&P 500 index are usually good buying opportunities, which aligns with Goldman Sachs' fundamental scenario assumptions.Goldman Sachs also proposed three strategies:Investors should hold "non-sensitive" stocks, which are not significantly affected by the main drivers of market volatility and show the lowest sensitivity to U.S. economic growth, trade policy risks, and market pricing of artificial intelligence.Investors should consider stocks that are impacted by hedge fund position adjustments and are trading at discounted valuations.For investors concerned about recession risks, they should hold stocks with stable growth