Deep Tide TechFlow News, July 8th, according to Jinshi Data reports, Goldman Sachs has once again raised its target for the S&P 500 index in less than two months. Led by David Kostin, Goldman Sachs strategists wrote in a report: "The Federal Reserve is implementing accommodative policies earlier and more deeply than expected, bond yields are lower than our previous expectations, the fundamentals of large-cap stocks remain strong, and investors are willing to overlook potential short-term earnings weaknesses, all support our upward revision of the forward P/E ratio expectation for the S&P 500 index from 20.4 times to 22 times. The 3-month, 6-month, and 12-month return expectations for the S&P 500 index have been raised to +3%, +6%, and +11%, respectively, with new target levels of 6,400 points, 6,600 points, and 6,900 points, compared to previous forecasts of 5,900 points, 6,100 points, and 6,500 points."
The strategists maintain their forecast for S&P 500 earnings per share to grow by 7% in 2025 and 2026, but believe this forecast faces two-way risks. The key downside factor for the earnings per share forecast is the final level of tariffs and their impact on corporate profits. Although narrowing breadth often signals a risk of declines greater than average levels, the analysts at the firm believe that 'chasing gains' is more likely than 'chasing declines' and expect the market rally to expand in the coming months, favoring overweight positions in software and services, materials, utilities, media and entertainment, and real estate.