Goldman Sachs raised its S&P 500 forecast as trade tensions between the US and China eased. The bank’s analysts suggest investors will pour more money in American stocks, betting on stronger growth in the domestic market.
Goldman Sachs strategists now believe the S&P 500 could reach 6,500 within the next 12 months, up from their previous target of 6,200. The revised forecast follows a Wall Street rally driven by a US-China agreement to temporarily roll back tariffs and easing fears of a US recession.
However, Goldman Sachs analysts doubt US stocks will post significant gains in the coming months. They argue investors have already priced in high expectations for US economic growth, and companies could deliver weaker-than-expected earnings.
The bank recommends investors focusing on those firms that are capable of maintaining margins in the face of rising production costs.