Catenaa, Tuesday, July 08, 2025– Goldman Sachs raised their year-end targets for the S&P 500 index to 6,600 on Tuesday, broadly driven by reduced policy uncertainty, corporate earnings and potential rate cuts.
Goldman Sachs upped their target to 6,600 from 6,100, implying an upside of about 6% respectively to the last close of 6,229.28.
This marks Goldman’s second upward revision in two months, following a previous increase in early May.
US stocks opened on Tuesday with the S&P 500 down by 0.02%, Dow Jones down by 0.2% and Nasdaq up by 0.1%
Earlier this year, major brokerages, including BofA, cut their targets below 6,000 after US President Donald Trump’s “Liberation Day” tariffs in April sparked fears of a U.S. recession and escalated global trade tensions, triggering a sell-off in equities.
However, reductions in some tariff rates have since eased investor concerns, diminished recession risks, and driven stocks to record highs last week.
“A resilient outlook for 2026 earnings growth, the resumption of Fed rate cuts, and neutral investor positioning argue for further market upside as the recent narrow rally broadens,” Goldman said in a note late on Monday.
Last month, Barclays, Citigroup and Deutsche Bank lifted their S&P 500 targets. Recent softer US economic data have also boosted expectations for further interest rate cuts by the US Federal Reserve that could aid equities.
“Recent inflation data and corporate surveys indicate less tariff pass-through so far than we expected,” Goldman said.
The brokerage also raised its next three-month and 12-month target for the index to 6,400 and 6,900 from its previous forecast of 5,900 and 6,500, respectively.
“We expect the digestion of tariffs to be a gradual process, and large-cap companies appear to have some buffer from inventories ahead of the increase in tariff rates,” Goldman added.
