Kostin initially set a 6,500-point target for the S&P 500 before reducing it to 6,200 points in early March. Now, he believes that the 5,700 points target is more appropriate, taking into consideration the increasing risk of recession as well as uncertainty caused by the changes to tariff policy.

Kostin also noted that the S&P 500 could sink much further in the trend of deteriorating growth outlook and investor confidence persists.

“If the growth outlook and investor confidence deteriorate even further, valuations could decline much more than we forecast,” Kostin wrote. “We continue to recommend investors watch for an improvement in the growth outlook, more asymmetry in market pricing, or depressed positioning before trying to trade a market bottom.”

Kostin’s target put the S&P 500 on track for marginal growth for the rest of 2025. The benchmark index closed at 5,580.94 points on Friday following a 112.37-point or 1.97% drop. It has been 4.90% down since the beginning of the year.

The post Goldman Sachs Lowers S&P 500 Target to 5,700 on Recession Risk and Tariff-Related Uncertainty appeared first on theprimarymarket.com.

“AI is not a bubble. It’s a trend that we’re in the early stages of seeing how it affects business productivity,” Solomon stated while being interviewed on the David Rubinstein Show. He added that Goldman Sachs has made use of AI for decades, adding that the company has already launched AI ventures that could change how business deals could be conducted. Louisa AI, which was founded five years ago, aids bankers and investors analyze millions of articles to help them identify the best possible deals.

Since its founding, Louisa AI has continued scouring for new AI deals, suggesting $800 million in deals per quarter, Goldman Sachs managing director Rohan Doctor explained. Goldman Sachs is also looking to launch several generative AI tools in the coming months for its workforce to utilize.

The post Goldman Sachs CEO Expects AI to Revolutionize Modern Business appeared first on theprimarymarket.com.

Goldman Sachs benefited from incurring smaller loan loss provisions than predicted and better fixed income results than the bank internally expected. Its focus on asset and wealth management and exit from consumer banking paid off, with a surge in investment banking fees of 21% also playing a big role.

The bank reported $8.62 in earnings per share versus $8.34 estimated by analysts, while its revenue of $12.73 billion easily cleared the expected $12.46 billion mark.

Investment banking is rebounding after a challenging couple of years for the sector, and Goldman Sachs expects to have even better results in the second part of the year.

“We are in the early innings of capital markets and M&A recovery, and while certain transaction volumes are still well below their tenure averages, we remain very well positioned to benefit from a continued resurgence of activity,” CEO David Solomon said during a conference call with analysts.

Goldman Sachs’ shares jumped 2.57% after the earnings report, closing at $492.23 per share on Monday. The stock is currently 26.77% up year-to-date.

The post Goldman Sachs’ Earnings Top Analysts Expectations, Profit Soars 150% appeared first on theprimarymarket.com.

In 2023, Goldman Sachs finally gave up on its attempts to enter consumer banking after incurring more than $3 billion in losses from the consumer banking division. The company embarked on a series of layoffs and saw its stock plunge below $300 per share in October.

But things seem to be improving for Goldman Sachs in 2024. The company cut its losses, exited unprofitable projects, and returned to doing what it did best, focusing on wealth and asset management. Its shares previously hit their all-time high in May and, despite a slight slip, remain 18.16% up year-to-date.

Analysts seem to love the future for Goldman Sachs, with nine analysts covering the company’s stock having a “Buy” rating on it. This includes Wells Fargo Securities’ Mike Mayo, who has a target price of $504 on the stock.

“Goldman is back. The mass market consumer has never been Goldman’s forte, and they went ahead, and in my view, wasted several billion dollars, diverted management attention, and it was just to me, a foray that never should have been attempted,” Mayo told media outlet Fortune in a recent chat.

The post Goldman Sachs Stock Continues to Surge, Analysts Predict it Will Surpass $500 Mark appeared first on theprimarymarket.com.

Goldman Sachs analysts based their prediction on the growth in earnings that the major US tech stocks showed, as well as the favorable price-to-earnings ratio.

Five of the biggest US tech stocks – Microsoft, Nvidia, Google, Amazon.com, and Meta Platforms – currently comprise 25% of the value of the S&P 500 after experiencing a collective jump of 45% so far in 2024.

“The drivers of the rally include upward revisions to consensus 2024 earnings estimates for these same tech companies and valuation expansion stemming from increased investor enthusiasm about artificial intelligence (AI),” Goldman Sachs analysts wrote in the note.

However, not everyone is happy about tech stocks driving the growth of the S&P 500. While tech companies are expected to remain strong in the foreseeable future, some analysts believe that other sectors will need to step up in order to make it sustainable.

S&P 500 closed at 5,431.60 points on Friday after a steady climb in recent weeks that was followed by new record highs. The index is up 14.40% year-to-date.

The post Goldman Sachs Lifts Prediction for S&P 500 in 2024 to 5,600 appeared first on theprimarymarket.com.

The firm’s team of strategists, led by David Kostin, expect the valuations of megacap tech companies to continue their expansion, thereby potentially sending the index to 6,000 by year-end, reaching a forward price-to-earnings ratio of 23.

“Although AI optimism appears high, long-term growth expectations and valuations for the largest TMT stocks are still far from ‘bubble’ territory,” the team of strategists observed in a note to investors. Closing at 5,234.18 on Friday, the S&P 500 is up by almost 10% this year.

The post Goldman Sticks With S&P 500 Year-End Forecast of 5,200 Amid Strong Economic Data appeared first on theprimarymarket.com.

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.

The post Goldman Sachs Lifts S&P 500 Target Amid Rising Performance appeared first on theprimarymarket.com.

The company’s net income of $8.52 billion for 2023 marked a 24% slump from the previous year, which is also its worst performance since David Solomon’s first year as CEO, when the company earned $8.46 billion. Still, the firm’s profit rose during the final quarter of 2023, with Goldman Sachs earning $2 billion over the three months ended December. This is a colossal 51% rise from the fourth quarter of 2022.

Goldman’s investment banking revenues for the fourth quarter were $3.6 billion; a 6% rise from Q3 yet still 12% lower than the fourth quarter of 2022. Data from Dealogic showed that full-year investment banking revenue was at its lowest point since 2013. Still, 2023 proved to be a challenging year economically for the industry at large, with Goldman Sachs still outperforming Wall Street rivals JPMorgan, Bank of America, Morgan Stanley, and Citi in terms of Q4 investment banking earnings.

The post Goldman Sachs Posts 51% Gain in Year-On-Year Quarterly Earnings appeared first on theprimarymarket.com.

According to data compiled by Bloomberg, the 20 Wall Street strategists tracked by the financial news outlet project the S&P 500 to finish 2024 at 4,850, just under 2% more than 2023. Still, there is a major deviation between more optimistic strategists such as Oppenheimer and Funstrat, who are predicting a 5,200 finish, and conservative strategists such as JPMorgan, who posted a forecast of 4,200.

Goldman Sachs strategists decided to boost their forecasts following the two-month rally amid rising investor confidence. “Resilient growth and falling rates should benefit stocks with weaker balance sheets, particularly those that are sensitive to economic growth,” Goldman Sachs chief US equity strategist David Kostin wrote in a note to investors. The firm has posted a 2024 forecast of 5,100 for the benchmark index.

JPMorgan retains a hawkish outlook, however, forecasting a 12% decline for the S&P 500. “Absent rapid Fed easing, we expect a more challenging macro backdrop for stocks next year with softening consumer trends at a time when investor positioning and sentiment have mostly reversed,” the firm’s team of analysts wrote in its 2024 outlook report.

The post Leading Strategists Reveal 2024 S&P 500 Forecasts appeared first on theprimarymarket.com.

“The change does not reflect any major shift in our thinking but rather that the rough thresholds for cutting that we have given previously are now reached earlier,” the Goldman Sachs team wrote in a note explaining their adjusted forecast. The firm’s economists now expect inflation to fall sooner next year than initially projected.

Inflation as measured by the Fed’s preferred inflation gauge, the core Personal Consumption Expenditures index, is expected to hit 2.5% by the second quarter of next year. Originally, Goldman Sachs expected this figure to be realized by the fourth quarter of 2024. While still above the Fed’s 2% target, inflation has continued to show signs of movement toward this figure, with core PCE at 3.5% in October.

The post Goldman Sachs Expects Fed Rate Cut By July 2024 appeared first on theprimarymarket.com.

Kostin initially set a 6,500-point target for the S&P 500 before reducing it to 6,200 points in early March. Now, he believes that the 5,700 points target is more appropriate, taking into consideration the increasing risk of recession as well as uncertainty caused by the changes to tariff policy.

Kostin also noted that the S&P 500 could sink much further in the trend of deteriorating growth outlook and investor confidence persists.

“If the growth outlook and investor confidence deteriorate even further, valuations could decline much more than we forecast,” Kostin wrote. “We continue to recommend investors watch for an improvement in the growth outlook, more asymmetry in market pricing, or depressed positioning before trying to trade a market bottom.”

Kostin’s target put the S&P 500 on track for marginal growth for the rest of 2025. The benchmark index closed at 5,580.94 points on Friday following a 112.37-point or 1.97% drop. It has been 4.90% down since the beginning of the year.

The post Goldman Sachs Lowers S&P 500 Target to 5,700 on Recession Risk and Tariff-Related Uncertainty appeared first on theprimarymarket.com.

“AI is not a bubble. It’s a trend that we’re in the early stages of seeing how it affects business productivity,” Solomon stated while being interviewed on the David Rubinstein Show. He added that Goldman Sachs has made use of AI for decades, adding that the company has already launched AI ventures that could change how business deals could be conducted. Louisa AI, which was founded five years ago, aids bankers and investors analyze millions of articles to help them identify the best possible deals.

Since its founding, Louisa AI has continued scouring for new AI deals, suggesting $800 million in deals per quarter, Goldman Sachs managing director Rohan Doctor explained. Goldman Sachs is also looking to launch several generative AI tools in the coming months for its workforce to utilize.

The post Goldman Sachs CEO Expects AI to Revolutionize Modern Business appeared first on theprimarymarket.com.

Goldman Sachs benefited from incurring smaller loan loss provisions than predicted and better fixed income results than the bank internally expected. Its focus on asset and wealth management and exit from consumer banking paid off, with a surge in investment banking fees of 21% also playing a big role.

The bank reported $8.62 in earnings per share versus $8.34 estimated by analysts, while its revenue of $12.73 billion easily cleared the expected $12.46 billion mark.

Investment banking is rebounding after a challenging couple of years for the sector, and Goldman Sachs expects to have even better results in the second part of the year.

“We are in the early innings of capital markets and M&A recovery, and while certain transaction volumes are still well below their tenure averages, we remain very well positioned to benefit from a continued resurgence of activity,” CEO David Solomon said during a conference call with analysts.

Goldman Sachs’ shares jumped 2.57% after the earnings report, closing at $492.23 per share on Monday. The stock is currently 26.77% up year-to-date.

The post Goldman Sachs’ Earnings Top Analysts Expectations, Profit Soars 150% appeared first on theprimarymarket.com.

In 2023, Goldman Sachs finally gave up on its attempts to enter consumer banking after incurring more than $3 billion in losses from the consumer banking division. The company embarked on a series of layoffs and saw its stock plunge below $300 per share in October.

But things seem to be improving for Goldman Sachs in 2024. The company cut its losses, exited unprofitable projects, and returned to doing what it did best, focusing on wealth and asset management. Its shares previously hit their all-time high in May and, despite a slight slip, remain 18.16% up year-to-date.

Analysts seem to love the future for Goldman Sachs, with nine analysts covering the company’s stock having a “Buy” rating on it. This includes Wells Fargo Securities’ Mike Mayo, who has a target price of $504 on the stock.

“Goldman is back. The mass market consumer has never been Goldman’s forte, and they went ahead, and in my view, wasted several billion dollars, diverted management attention, and it was just to me, a foray that never should have been attempted,” Mayo told media outlet Fortune in a recent chat.

The post Goldman Sachs Stock Continues to Surge, Analysts Predict it Will Surpass $500 Mark appeared first on theprimarymarket.com.

Goldman Sachs analysts based their prediction on the growth in earnings that the major US tech stocks showed, as well as the favorable price-to-earnings ratio.

Five of the biggest US tech stocks – Microsoft, Nvidia, Google, Amazon.com, and Meta Platforms – currently comprise 25% of the value of the S&P 500 after experiencing a collective jump of 45% so far in 2024.

“The drivers of the rally include upward revisions to consensus 2024 earnings estimates for these same tech companies and valuation expansion stemming from increased investor enthusiasm about artificial intelligence (AI),” Goldman Sachs analysts wrote in the note.

However, not everyone is happy about tech stocks driving the growth of the S&P 500. While tech companies are expected to remain strong in the foreseeable future, some analysts believe that other sectors will need to step up in order to make it sustainable.

S&P 500 closed at 5,431.60 points on Friday after a steady climb in recent weeks that was followed by new record highs. The index is up 14.40% year-to-date.

The post Goldman Sachs Lifts Prediction for S&P 500 in 2024 to 5,600 appeared first on theprimarymarket.com.

The firm’s team of strategists, led by David Kostin, expect the valuations of megacap tech companies to continue their expansion, thereby potentially sending the index to 6,000 by year-end, reaching a forward price-to-earnings ratio of 23.

“Although AI optimism appears high, long-term growth expectations and valuations for the largest TMT stocks are still far from ‘bubble’ territory,” the team of strategists observed in a note to investors. Closing at 5,234.18 on Friday, the S&P 500 is up by almost 10% this year.

The post Goldman Sticks With S&P 500 Year-End Forecast of 5,200 Amid Strong Economic Data appeared first on theprimarymarket.com.

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.

The post Goldman Sachs Lifts S&P 500 Target Amid Rising Performance appeared first on theprimarymarket.com.

The company’s net income of $8.52 billion for 2023 marked a 24% slump from the previous year, which is also its worst performance since David Solomon’s first year as CEO, when the company earned $8.46 billion. Still, the firm’s profit rose during the final quarter of 2023, with Goldman Sachs earning $2 billion over the three months ended December. This is a colossal 51% rise from the fourth quarter of 2022.

Goldman’s investment banking revenues for the fourth quarter were $3.6 billion; a 6% rise from Q3 yet still 12% lower than the fourth quarter of 2022. Data from Dealogic showed that full-year investment banking revenue was at its lowest point since 2013. Still, 2023 proved to be a challenging year economically for the industry at large, with Goldman Sachs still outperforming Wall Street rivals JPMorgan, Bank of America, Morgan Stanley, and Citi in terms of Q4 investment banking earnings.

The post Goldman Sachs Posts 51% Gain in Year-On-Year Quarterly Earnings appeared first on theprimarymarket.com.

According to data compiled by Bloomberg, the 20 Wall Street strategists tracked by the financial news outlet project the S&P 500 to finish 2024 at 4,850, just under 2% more than 2023. Still, there is a major deviation between more optimistic strategists such as Oppenheimer and Funstrat, who are predicting a 5,200 finish, and conservative strategists such as JPMorgan, who posted a forecast of 4,200.

Goldman Sachs strategists decided to boost their forecasts following the two-month rally amid rising investor confidence. “Resilient growth and falling rates should benefit stocks with weaker balance sheets, particularly those that are sensitive to economic growth,” Goldman Sachs chief US equity strategist David Kostin wrote in a note to investors. The firm has posted a 2024 forecast of 5,100 for the benchmark index.

JPMorgan retains a hawkish outlook, however, forecasting a 12% decline for the S&P 500. “Absent rapid Fed easing, we expect a more challenging macro backdrop for stocks next year with softening consumer trends at a time when investor positioning and sentiment have mostly reversed,” the firm’s team of analysts wrote in its 2024 outlook report.

The post Leading Strategists Reveal 2024 S&P 500 Forecasts appeared first on theprimarymarket.com.

“The change does not reflect any major shift in our thinking but rather that the rough thresholds for cutting that we have given previously are now reached earlier,” the Goldman Sachs team wrote in a note explaining their adjusted forecast. The firm’s economists now expect inflation to fall sooner next year than initially projected.

Inflation as measured by the Fed’s preferred inflation gauge, the core Personal Consumption Expenditures index, is expected to hit 2.5% by the second quarter of next year. Originally, Goldman Sachs expected this figure to be realized by the fourth quarter of 2024. While still above the Fed’s 2% target, inflation has continued to show signs of movement toward this figure, with core PCE at 3.5% in October.

The post Goldman Sachs Expects Fed Rate Cut By July 2024 appeared first on theprimarymarket.com.