Goldman Sachs raised targets for the S&P 500 Index while trimming recession odds and delaying Federal Reserve rate cut forecasts.
What Happened: In a note shared Tuesday, equity strategist David J. Kostin said the investment bank now expects the S&P 500 to climb to 6,500 over the next 12 months. That’s up from a prior projection of 6,200.
The three-month target has been raised from 5,700 to 5,900. The six-month view, aligning with year-end, moved to 6,100, up from the previous 5,900.
Kostin said the revisions reflect “lower tariff rates, better economic growth, and less recession risk than we previously expected.”
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The S&P 500 — as tracked by the SPDR S&P 500 ETF Trust (NYSE:SPY) — rose 0.4% to 5,860 on Tuesday. It hit levels last seen in early March and extending its recovery to 21% since April’s lows.
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