Goldman Sachs raises S&P 500 target price repeatedly: looking at 6,800 points by year-end, aiming for 7,200 points next year
Goldman Sachs raised its year-end target for the S&P 500 Index from 6,600 points to 6,800 points, expecting an additional 2% upside. Goldman Sachs also raised its return expectations for 6 months and 12 months to 5% and 8%, respectively, with corresponding index levels reaching 7,000 points and 7,200 points. The upward revision is mainly based on the Federal Reserve's policy becoming more dovish and the resilience of corporate earnings. The S&P 500 Index has risen over 30% since April and has repeatedly set closing records between July and September
According to the Zhitong Finance APP, recently, Goldman Sachs raised its year-end target for the S&P 500 Index from 6,600 points to 6,800 points. Based on the index's latest closing price, there is still a 2% upside potential. Goldman Sachs stated that the target adjustment is mainly based on two reasons: the Federal Reserve's policy stance is becoming more dovish, and corporate earnings performance shows resilience. In a report released last Friday, Goldman Sachs also raised its 6-month and 12-month return expectations for the S&P 500 Index to 5% and 8%, respectively, which corresponds to index levels of 7,000 points and 7,200 points.
The previous week, the Federal Reserve implemented its first interest rate cut since December of last year and indicated plans for further cuts in October and December as the labor market gradually cools.
Goldman Sachs still predicts that both meetings will adopt a 25 basis point rate cut, a view that is also supported by most major Wall Street firms.
Earlier this year, after U.S. President Donald Trump launched the "Liberation Day" tariff policy in April, concerns about an economic recession intensified, triggering a global stock market sell-off, with major firms lowering their S&P 500 Index target levels to below 6,000 points.
However, the subsequent easing of tariff policies and the warming expectations of Federal Reserve easing alleviated investor anxiety, reduced recession risks, and propelled the stock market to new historical highs. According to S&P Global data, the S&P 500 Index has risen over 30% since its low on April 8 and has repeatedly set closing records between July and September, reaching a latest closing price of 6,693.75 points by early September
