Wall Street may already be sitting near record highs, but Goldman Sachs believes the rally still has legs—thanks to lower yields, mega-cap momentum and the Fed’s return to cutting rates, the bank now sees the S&P 500 hitting 6,900 in the next 12 months.
In a new note Monday, David J. Kostin, chief U.S. equity strategist at Goldman Sachs, said he expects the S&P 500 – as tracked by the Vanguard S&P 500 ETF (NYSE:VOO) – to climb to 6,400 in three months, a gain of 3%, 6,600 by year-end, up 6%, and 6,900 within 12 months, an 11% increase.
That’s a significant boost from their previous targets of 5,900, 6,100 and 6,500, respectively—and well above the median consensus forecast of 5,975.
Why The Upgrade? Think Fed Cuts And Big Tech
Goldman’s forecast shift is built on three key assumptions: earlier and deeper Fed cuts, lower bond yields and the staying power of …