Goldman Sachs have raised their target for the S&P 500 this year to 6600, from 6100 previously. The bank had previously increased its target as recently as May.
I posted the forecast yesterday:
Adding a little more now:
- “A resilient outlook for 2026 earnings growth, the resumption of Fed rate cuts, and neutral investor positioning argue for further market upside as the recent narrow rally broadens”
- Earlier and deeper Fed easing and lower bond yields than we previously expected, continued fundamental strength of the largest stocks, and investors’ willingness to look through likely near-term earnings weakness support our revised S&P 500 forward P/E forecast of 22x (from 20.4x).”
- “Recent inflation data and corporate surveys indicate less tariff pass-through so far than we expected”
- “We expect the digestion of tariffs to be a gradual process, and large-cap companies appear to have some buffer from inventories ahead of the increase in tariff rates”
This article was written by Eamonn Sheridan at www.forexlive.com.