Goldman Sachs raised its year-end target for the S&P 500 to 6,800 from an earlier 6,600, implying a 2.04 percent upside from its last close as it cited a dovish US Federal Reserve and resilient corporate earnings.
In a note late on Friday Goldman also raised its 6-and-12-months return forecasts to 5 percent and 8 percent, implying levels of 7,000 and 7,200.
The Fed last week cut interest rates for the first time since December and signaled further reductions at its October and December meetings amid rising unemployment and signs of a weakening labor market.
Analysts at Goldman have said earlier they expect quarter-point cuts at both meetings, in line with most major brokerages.
Earlier this year, major brokerages had cut their targets below 6,000 after US President Donald Trump’s “Liberation Day” tariffs in April spurred fears of recession and sparked a global equity selloff.
But tariff rollbacks and hopes of Fed easing have since soothed investors, lowered recession risks and pushed stocks to record highs.
