Goldman Sachs Abruptly Lifts Target for S&P 500 as US and China Agree To Reduce Tariffs by 115%: Report
Goldman Sachs has raised its one-year target for the S&P 500 from 6,200 to 6,500, predicting an 11% rally following a trade deal between the US and China that significantly reduces tariffs. The agreement is seen as alleviating recession risks and market uncertainty. However, while remaining bullish long-term, Goldman warns that the recent rally may lose momentum after reaching their short-term target of 5,900, with the S&P 500 currently trading at 5,886.
Financial services giant Goldman Sachs is reportedly predicting that the S&P 500 (SPX) will hit a new all-time high over the next 12 months amid improving market conditions.
In an investment note, analysts at Goldman raise their one-year target for the S&P 500 from 6,200 to a new record high of 6,500, reports Bloomberg.
According to a team led by chief US equity strategist David Kostin, the stock market index will rally about 11% from current levels after the White House announced an initial trade deal with China that massively reduces tariffs on both sides.
Says Treasury Secretary Scott Bessent,
Goldman notes that the agreement between the two economic powerhouses has allayed recession risks and market uncertainty.
While Kostin’s team remains bullish on the stock market over the long term, Goldman strategists believe the recent S&P 500 rally may soon lose steam after hitting their three-month target of 5,900 on Monday. They remain cautious in the near term, warning that current conditions do not support a sustained market rebound.
As of Tuesday’s close, the S&P 500 is trading at 5,886.
