Wednesday, November 13, 2024
English English French Spanish Italian Korean Japanese Russian Hindi Chinese (Simplified)

Goldman Sachs has increased its 2024 year-end target for the S&P 500 Index from 5,200 to 5,600, citing robust earnings growth from five mega-cap U.S. tech stocks and a higher fair value price-to-earnings (P/E) ratio multiple. According to a note released by the brokerage after markets closed on Friday, the tech giants Microsoft, Nvidia, Google, Amazon.com, and Meta Platforms have collectively surged by 45%, now accounting for 25% of the S&P 500’s equity cap.

The note highlighted that the rally’s key drivers include upward revisions to the consensus 2024 earnings estimates for these tech companies and increased investor enthusiasm about artificial intelligence (AI), leading to valuation expansion. The upgraded target indicates an approximate 3.1% upside from the index’s last close of 5,431.60.

Goldman Sachs expects real yields to remain relatively unchanged by the year-end and anticipates strong earnings growth to support a 15x P/E for the equal-weight S&P 500 Index. However, the brokerage pointed out that the upcoming U.S. presidential election poses a significant risk to the S&P 500’s level, falling between its 3-month and year-end forecast horizons.

Analysts at Goldman Sachs noted that historically, index volatility increases before elections but tends to subside following the election, with the S&P 500 index typically rebounding to an even higher level post-election.

Subscribe

* indicates required

The Enterprise is an online business news portal that offers extensive reportage of corporate, economic, financial, market, and technology news from around the world. Visit to explore daily national, international & business news, track market movements, and read succinct coverage of significant events. The Enterprise is also your reach vehicle to connect with, and read about senior business executives.

Address: 150th Ct NE, Redmond, WA 98052-4166

©2024 The Enterprise – All Right Reserved.

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept