Goldman Sachs raises its target for the S&P500 for second time in two months
The SPX500 is hovering just shy of the 5,000 level. Goldman Sachs has set a new target for the index, the second time it has done so since December. The investment banks now estimate a year-end target for the SPX500 of 5,200 which is higher than its previous estimate of 5,100.
When it upgraded two months ago from 4,700, the core assumption was lower interest rates and a dovish Federal Reserve. However, GS.us did not mention the central bank in its revision. This, despite the fact that the first interest rate cut has been pushed back by the market from March to June due to strong growth and inflation data.
Goldman has also raised its earnings-per-share outlook for the SPX500, predicting 8% growth in 2024 and 6% in 2025. The investment banks still see the Magnificent Seven tech stocks (Microsoft, Apple, Alphabet, Amazon, Meta, Nvidia, Tesla) as influential, and it anticipates continued outperformance in the IT and communication services sector.
Russell Shor
Senior Market Strategist
Russell Shor is a Senior Market Strategist at FXCM, having been promoted to the role in 2025 in recognition of his depth of insight and consistent delivery of high-impact market analysis. He originally joined FXCM in October 2017 as a Senior Market Specialist.
Russell holds an Honours Degree in Economics from the University of South Africa, is a certified FMVA®, and a full member of the Society of Technical Analysts (UK). With over 20 years of experience in financial markets, his work is renowned for its clarity, precision, and strategic value across asset classes.
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