Goldman Sachs has raised its S&P 500 forecast to 6,800 for the end of 2025. The prediction follows the index’s crossing of the previous estimate of 6,600 this week. The leading bank is bullish on the US stock market, citing resilient corporate earnings. The global bank also cited the recent rate cuts by the Fed as a bullish catalyst.
The S&P index is currently at the 6,693 level after surging by close to 30 points on Monday. It spiked around 14% year-to-date and recovered quickly after April’s market crash. The rebound in price is making Goldman Sachs bullish on the S&P 500 prospects. If it reaches 6,800, it would be an uptick of 1.6% in the next three months.
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S&P 500 Index Will Hit 7,200: Goldman Sachs
Goldman Sachs wrote in a note to clients estimating that the S&P 500 index would reach 6,800 by the end of 2025. However, the bank remains bullish, citing that the index could reach between 7,000 and 7,200 in the next six to 12 months. That would be an uptick and return on investment (ROI) of approximately 4.6% to 7.6%.
The positive estimates from Goldman Sachs on the S&P 500 index come despite the tariffs and trade wars. If the tariffs are scaled back by the White House, the markets could rally further as geopolitical tensions ease. However, the projection is based on the ongoing market and geopolitical conditions.
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The quick market recovery from April has soothed investors, making them take entry positions. Several analysts had doubted that the S&P 500 index would reach the 6,000 level after Trump’s Liberation Day, but Goldman Sachs provided a forecast that it could hit 6,000. Now it has crossed both the forecasts of 6,000 and 6,600. The only target left to attain now is the 6,800 level by the end of 2025 and the 7,000 to 7,200 range in the next six to 12 months.