S&P 500 climbs slowly but steadily
Great times are ahead for the broad S&P 500 index! Analysts at Goldman Sachs predict it will hit an impressive 6,500 points by the end of 2025.
According to the bank’s forecasts, this growth will be driven by an improving economic landscape in the United States and rising corporate profits. Goldman Sachs estimates that their target for the S&P 500 implies a 10.3% increase from current levels.
Experts believe that the Magnificent Seven stocks in the index will outperform the remaining 493 companies in 2025. However, they note that this outperformance will be modest—just 7%, the lowest in seven years, according to Goldman Sachs.
Additionally, the bank predicts an 11% growth in corporate earnings and a 2.5% real GDP increase in the United States in 2025. Despite these positives, analysts warn that risks to the broader US stock market remain high in the coming year. Potential tariffs under the Trump administration and rising bond yields are among the key concerns.
Goldman Sachs also foresees S&P 500 companies to earn $268 per share in 2025.
Meanwhile, Morgan Stanley’s currency strategists have stated that the benchmark index could reach 6,500 points by the end of next year. They attribute this to continued profit growth in the US as the Federal Reserve lowers interest rates and business cycle indicators improve.