Bond.az reports that Goldman Sachs has raised its 2026 year-end forecast for the S&P 500 index to 8,000 from 7,600, citing continued strength in corporate earnings.
The target is 6.4% higher than the index’s last close of 7,519.12.
'Earnings growth has powered the entire S&P 500 return so far this year, and we expect this dynamic to continue in the coming months,' Goldman Sachs said in a note.
The brokerage also raised its S&P 500 earnings-per-share forecasts to $340 for 2026 (24% year-on-year growth) and to $385 for 2027 (13% growth).
This adds to a growing wave of bullish calls from brokerages. UBS GWM recently lifted its outlook, citing robust AI-driven earnings that could offset inflationary pressures.
Goldman noted that AI infrastructure beneficiaries are set to drive about half of the index's earnings growth this year. While weak consumer spending and elevated costs pose risks, strong AI investments would offset these pressures.
