How High Can S&P 500 Go In 2024? Goldman Sachs Sets An Even Loftier Target
Portfolio Pulse from Piero Cingari
Goldman Sachs' chief equity strategist, David Kostin, has raised the S&P 500 year-end target for 2024 to 5,100, up from 4,700, a 7% increase from its current level. This revision is based on expectations of Federal Reserve rate cuts and a global disinflation trend. Goldman Sachs projects rate cuts in March, May, and June of the upcoming year, with a policy rate between 4.0% and 4.25% by year-end. The bank also forecasts a 5% year-over-year earnings growth for the S&P 500, with an EPS estimate of $237, above the median Wall Street estimate of $230. The SPDR S&P 500 ETF Trust (NYSE:SPY) reflects the current performance of the S&P 500.
December 18, 2023 | 4:18 pm
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POSITIVE IMPACT
Goldman Sachs' revised S&P 500 target suggests a bullish outlook, potentially leading to increased investor confidence in the SPDR S&P 500 ETF Trust (SPY), which tracks the S&P 500 index.
The upward revision of the S&P 500 target by Goldman Sachs is a strong positive signal for the SPY ETF, as it directly tracks the performance of the index. The anticipation of rate cuts by the Federal Reserve and a global disinflation trend could lead to a more favorable investment climate, potentially increasing the attractiveness of the SPY ETF to investors. The ETF's performance is closely tied to the S&P 500, and as such, any positive outlook for the index is likely to have a corresponding positive impact on the ETF.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100