Goldman Sachs Sets New Year End Target

Goldman Sachs Sets New Year End Target by Adam Rosen last updated on July 04, 2024

Goldman Sachs Sets 5600 As New Year End Target For S&Amp;Amp;P 500

The analysts at Goldman Sachs have revised its S&P 500 target higher for the year-end. The S&P 500 target has been raised from 5200 to 5600 points as Goldman Sachs believes that strong earnings from major US tech stocks will send the index higher.

The brokerage added that Google, Amazon, Nvidia, Microsoft, and Meta Platforms had staged a 45% gain collectively. In addition, these companies also represent around 25% of the equity cap of the S&P 500 index.

S&Amp;Amp;P 500 To Be Supported By Tech &Amp;Amp; Ai Boom

The key driver for the upward revision of the S&P 500 is that most of the tech companies continue to post impressive gains on the back of AI growth. So, as long as AI remains a key trend in the tech industry, the S&P 500 index will continue to set new records.

If we look at the S&P 500 index value, it is near 5431.60, which means the Goldman Sachs target shows an upside of 3.1%.

As for the real yields by the end of the year (2024), Goldman Sachs believes that it will remain unchanged. As for the earnings growth, it will remain strong and will likely result in a 15x P/E.

Meanwhile, the S&P 500 index will remain exposed to a major risk in the USA... Yes, we are talking about the US elections, which are just around the corner. According to Goldman Sachs, the S&P 500 target also accounts for all of these risks.

The US presidential election will be held in November 2024 and the stakes are at all times high. The Goldman Sachs experts also added that the volatility in the S&P 500 will also increase during the elections.

Once the high volatility from the election subsides, the S&P 500 will also likely turn higher and even cross the year-end forecasts from Goldman Sachs.

In fact, there's a good chance that the S&P 500 could also cross the recent target posted by Goldman Sachs.