UBS and Goldman Sachs Raise S&P 500 Targets Amid Optimistic Stock Market Outlook

Analysts cite strong consumer demand and robust corporate earnings as key drivers for the upward revision of year-end forecasts.

UBS raises its S&P 500 target to 5,400, marking a 9% increase from current levels, citing positive effects of demand-driven inflation on stocks.
Goldman Sachs increases its year-end S&P 500 target to 5,200, driven by higher-than-expected profit estimates and strong economic growth.
Analysts highlight the positive impact of strong consumer demand, evidenced by recent economic data including consumer confidence and payrolls.
Despite concerns over sticky inflation, UBS analysts argue that it can be beneficial for stocks, as returns and profits are measured in nominal dollars.
The upward revisions come amid a broader bullish sentiment on Wall Street, with the S&P 500 hitting new record highs in early 2024.