Goldman Sachs boosts S&P 500 target to 5,200 on surging profit outlook
Goldman Sachs Group Inc. has revised its 2024 target for the S&P 500 Index, now projecting a climb to 5,200 by year-end, a 3.9% increase from Friday’s close.
Goldman Sachs Group Inc. has revised its 2024 target for the S&P 500 Index, now projecting a climb to 5,200 by year-end, a 3.9% increase from Friday’s close.
Over 40% of investors surveyed at a Goldman Sachs conference in Hong Kong deemed China’s stock market “uninvestable.”
While rising rates have hammered tech stocks broadly this year, riskier companies have been hit especially hard.
Investors hoping for a better year in 2023 will be disappointed, according to strategists, who said the bear market phase is not over yet.
Goldman expects a significant easing of US inflation in 2023 reflecting softening supply chain problems, a peak in shelter inflation and slower wage growth.
Goldman lowered earnings estimates for the S&P 500 Index, saying margins contraction in the third-quarter signals more pain ahead.Â
Strategists at Goldman Sachs Group Inc. say a complete China reopening will drive a 20% gain in Chinese equities.
None of the US assets tracked by Goldman are fully pricing in a recession, with equities factoring in the lowest odds of a “severe hawkish scenario,” the strategists wrote.
US equities have been hammered this year as signs of stubbornly high inflation and a hawkish Federal Reserve raise the specter of recession, even as President Joe Biden has said a downturn will be “very slight.”
Wall Street fears that even after this year’s brutal selloff, stocks have yet to price in all the risks stemming from central banks’ aggressive tightening as inflation remains stubbornly high.