Goldman Sachs & Co. analysts downgraded U.S. financial and consumer stocks, admitting it made a mistake when it upgraded both sectors on May 5, Reuters reported.

Financial stocks have fallen 18 percent since the upgrade seven weeks ago and consumer discretionary stocks, which includes industries such as cars, clothing and leisure, have declined 7 percent. The Standard & Poor’s 500 index fell just 5 percent during that time.

Goldman had previously encouraged investors to overweight consumer stocks and maintain a neutral weight in financials. Yesterday, it changed its rating to “underweight” for both U.S. financial and consumer shares.

“We boosted our consumer discretionary and financial weights in May on the belief the sectors would benefit from bank recapitalizations and fiscal stimulus,” Goldman strategists led by David Kostin wrote. “Our thesis was clearly wrong in hindsight.”

The downgrade caused declines in the stock prices of several companies, including Merrill Lynch & Co. Inc., Citigroup Inc., The Home Depot Inc. and General Motors Corp.