Overview

• Goldman Sachs raised its three-, six- and 12-month S&P 500 return forecasts to index levels of 6,400, 6,600 and 6,900, implying gains of 3%, 6% and 11% from current levels.
• Bank of America Global Research increased its year-end S&P 500 target to 6,300 from 5,600, signaling a modest upside over Monday’s close.
• Analysts pointed to expectations of earlier and more aggressive Fed rate cuts along with lower bond yields as the primary drivers of higher forward P/E multiples.
• They noted that large-cap companies have built inventory buffers to absorb the impact of incoming tariffs and that recent tariff rate reductions have eased recession concerns.
• Stocks have rebounded to fresh record highs since April’s tariff-induced sell-off, supported by resilient corporate earnings and diminished policy uncertainty.