237 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. You Might Be Interested In EU Court Ruling: Ireland to Receive €13 Billion from Apple, Opening Doors for Infrastructure and Housing Investments GSK Welcomes Dr. Jeannie Lee as Non-Executive Director to Its Board Wayfair Announces Grand Opening Date for Its First Large-Format Store Texas Startup Accuses Nvidia and Microsoft of Patent Infringement in AI Race Allstate Sells Employer Voluntary Benefits Subsidiaries to StanCorp Financial Group in $2 Billion Cash Deal LKQ Corporation Executes Agreement to Sell Elit Polska in Poland to MEKO AB