Goldman Sachs raises 2025 forecast for S&P 500 index

Goldman Sachs has increased its 3-, 6- and 12-month return forecasts for the S&P 500 index, citing potential interest rate cuts in the US and fundamental strength of major American large-cap companies. According to updated estimates, the SPX index could rise 3% in three months and 11% in twelve months, with the bank setting respective target levels of 6,400 and 6,900 points. By year-end, the index is expected to climb 6% to 6,600 points.

Last week, the US stock market reached record highs due to strong labor market statistics. This alleviated investor concerns about slowing US economic growth.

Moreover, Donald Trump's tariff policies haven't impacted consumer prices as adversely as Goldman Sachs experts had previously anticipated. Bank representatives believe this fact increases the likelihood of the Federal Reserve (Fed) soon returning to interest rate cuts.