U.S. Markets close in 6 hrs 26 mins

Goldman Sachs downgrades outlook on US economy

Daniel Acker | Bloomberg | Getty Images

Goldman Sachs's (GS) economists on Wednesday downgraded their outlook on the U.S. economy in the second half of 2014 following disappointing data on domestic retail sales in September and business inventory in August .

They said in a research note they reduced their tracking estimate on U.S. gross domestic product (GDP) in the third quarter to an annualized rate of 3.2 percent from an earlier view of 3.5 percent.

They also cut their estimate on GDP in the fourth quarter by a quarter point to 3.0 percent.

Read More Can we forget about a Fed rate hike in 2015?