Goldman Sachs has adjusted its outlook for the S&P 500 in 2025, reflecting evolving economic conditions and market dynamics.
๐ Initial Projection: S&P 500 at 6,500
In November 2024, Goldman Sachs projected the S&P 500 would reach 6,500 by the end of 2025. This forecast implied approximately a 10% gain from the index's level at that time. The projection was based on expectations of continued #U.S. economic growth, an 11% increase in corporate earnings, and stable bond yields. Additionally, the "Magnificent Seven" tech stocksโ#amazon , Apple, Alphabet, Meta Platforms, Microsoft, Nvidia, and Tesla โwere anticipated to continue outperforming, though with a narrower margin compared to previous years .
๐ป Revised Forecast: S&P 500 at 6,200
By March 2025, Goldman Sachs revised its year-end target for the S&P 500 down to 6,200. This adjustment was attributed to increased economic uncertainties, including heightened trade policy risks and signs of stagflation. The firm also lowered its earnings-per-share (EPS) estimates for the index, now expecting $262 in 2025, down from the previous estimate of $268 .
