Goldman Sachs has updated its year-end and 12-month forecasts for the S&P 500 index, driven by anticipated margin growth for businesses and a positive macroeconomic outlook extending into 2025.
On Friday, the investment bank increased its 12-month target for the index from 6,000 to 6,300 and raised its current year-end projection from 5,600 to 6,000.
This new target suggests a potential gain of 4.32% based on the index’s closing value of 5,751.07 on Friday.
The firm is optimistic about corporate earnings, adjusting its earnings per share (EPS) estimate for 2025 to $268 from $256, indicating an 11% annual growth. Goldman Sachs has kept its 2024 EPS estimate at $241.
Recent data indicated that the U.S. economy outperformed expectations in the second quarter, bolstered by robust consumer spending and a rebound in corporate profits, which should support ongoing growth. Goldman Sachs analyst David Kostin noted that the macroeconomic environment is favorable for modest margin expansion.
A recent report highlighted that some Chinese investors are giving up on cryptocurrencies, and turning back to the country’s growing stock market, spurred by central bank measures to boost the economy.
The cryptocurrency landscape, particularly Bitcoin, tends to respond to significant economic indicators from the U.S. as traders adapt their strategies to align with macroeconomic trends.
Binance, the world’s largest cryptocurrency exchange, has rejected 86% of Israeli military requests to freeze crypto wallets linked to Palestinians and others due to a lack of sufficient evidence.
Tether has announced the upcoming release of a documentary highlighting the role of its stablecoin, USDT, in combating inflation, coinciding with the company’s 10th anniversary.