Goldman Sachs raises its target for the S&P500 for second time in two months

  • SPX500

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, 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 Specialist

Russell Shor joined FXCM in October 2017 as a Senior Market Specialist. He is a certified FMVA® and has an Honours Degree in Economics from the University of South Africa. Russell is a full member of the Society of Technical Analysts in the United Kingdom. With over 20 years of financial markets experience, his analysis is of a high standard and quality.

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