Goldman Sachs forecasts the S&P 500 to reach 7,600 by the end of 2026, with a long-term annualized return of 6.5% over the next decade, influenced by factors like corporate profitability, valuations, and the dominance of large tech companies, with AI presenting significant upside risks.
Goldman Sachs predicts a 30% rise in China's key stock index by 2027, driven by pro-market policies, profit growth, and strong investment flows, with a less volatile upward trend expected amid ongoing trade negotiations and economic reforms.
Evercore ISI has raised its year-end 2026 target for the S&P 500 to 7,750, citing artificial intelligence as a key driver of earnings and valuations, likening the current rally to the late 1990s internet boom, with broad-based gains and potential volatility.
The S&P 500 has experienced its first 'golden cross' in over two years, a bullish technical indicator suggesting momentum is building in favor of a continued market rally, with historical data supporting further gains over the next year. Despite some signs of caution, such as a bearish gold-platinum ratio, the overall outlook remains positive for the second half of 2025.
JPMorgan's new forecasting model, which analyzes six key signals, predicts a 96% chance of the stock market rising over the next six months, with an unusual finding that better valuations may signal worse future returns due to their link with declining Treasury yields.
Goldman Sachs has projected that the S&P 500 will see an 11% increase by 2025, reflecting a positive outlook for the stock market. This forecast aligns with other optimistic predictions from financial institutions like UBS and BMO, which also anticipate significant gains for the S&P 500 in the coming years.
The stock market saw mixed results as the Dow Jones dropped due to Boeing's 737 Max 9 jet grounding, while Nvidia stock hit a new high. Inflation reports and earnings season are anticipated this week. Alphabet, Netflix, Novo Nordisk, and Snowflake are among the best stocks to watch, while Nvidia and Tesla stocks traded mixed. Apple and Microsoft also saw trading activity.
Strategists at Societe Generale have increased their year-end S&P 500 target to 4,300, citing the 500 points added to the index by "AI boom" stocks. They also note positive signals such as a 3-4% increase in S&P 500 earnings per share and improving profit margins. However, they still see macroeconomic concerns and predict a drop in the S&P 500 to 3,800 by the first half of 2024 due to profit-margin reversal, credit weakness, and rising recession risk. The positive risk is that the AI boom feeds into the market, while the negative risk is anything that leads oil to move above $100 per barrel.