Goldman Sachs has decided to lift their 2024 target for the S&P 500 Index for the second straight month after the index exceeded 5,000 points for the first time in its history this month. The team of analysts, led by David Kostin, lifted its outlook to 5,200 by year-end.
In mid-December, a 5,100 close was predicted, with the target thus lifted by about 2% since. This is also a 3.9% jump from Friday’s close and a significant rise from the 4,700 set by Kostin’s team in November. “Increased profit estimates are the driver of the revision,” the team said of the adjustment in a note to clients.
The S&P 500 has risen by approximately 4.9% since the start of the year, with further increases expected amid expected interest rate cuts by the Federal Reserve and a projected artificial intelligence boom that is expected to lift tech stocks. Profits for companies listed in the index are expected to grow by 8.8% in 2024 compared to the previous year.