S&P 500 could reach 6,000 this year if Big Tech keeps impressing, says Goldman Sachs (2024)

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S&P 500 could reach 6,000 this year if Big Tech keeps impressing, says Goldman Sachs? ›

In our call of the day, a Goldman Sachs team led by its chief U.S. equity strategist, David Kostin, makes the case for the S&P 500 to hit 6,000 by the end of 2024, thanks to a relentless rise in big technology companies. The bank has twice lifted its year-end index call - its baseline forecast is 5,200.

Analysts expect overall S&P 500 earnings to rise 10.4% in 2024, LSEG data showed. But stocks are also at high valuation levels. The S&P 500 trades at a forward price-to-earnings ratio - a commonly used metric to value stocks - of 20.9, well above the index's historic average of 15.7, according to LSEG Datastream.

Here's its new S&P 500 target. The rally in May has also forced one of Wall Street's most prominent bears to turn bullish and bump up his prediction of where equities will go next. Mike Wilson, Morgan Stanley's chief U.S. equity strategist, said he sees the S&P 500 climbing to 5,400 by the second quarter of 2025.

The estimates from strategists put the median target for the S&P 500 at 5,200 by the end of 2024, implying a decline of less than 1% from Friday's level, according to MarketWatch calculations. Heading into 2024, the median target was around 5,000 (see table below).

Information technology stocks currently represent the largest sector of the benchmark S&P 500 Index, comprising 29% of the index's value. When you add in communications services stocks, many of which connect with the technology arena, the group represents more than 38% of the S&P 500.

Highlights: 5.2% 10-year expected nominal return for U.S. large-cap equities; 9.9% for European equities; 9.1% for emerging-markets equities; 5.0% for U.S. aggregate bonds (as of September 2023). All return assumptions are nominal (non-inflation-adjusted).

The S&P Target Date 2030 Index is designed to represent a broadly derived consensus of asset class exposure and glide path for target date year 2030. The index allocates to equities and fixed income at varying levels, according to a pre-determined schedule related to the respective target date.

Average Price Target

Based on 504 Wall Street analysts offering 12 month price targets to VOO holdings in the last 3 months. The average price target is $543.20 with a high forecast of $633.10 and a low forecast of $449.52. The average price target represents a 11.60% change from the last price of $486.73.

While there could be a growth slowdown in the first half of 2024, experts believe growth should resume in the second half of the year. Americans faced many financial challenges this year, from persistent inflation to increasingly expensive debt.

What is the prediction for the S&P 500 spy? ›

Based on 504 Wall Street analysts offering 12 month price targets to SPY holdings in the last 3 months. The average price target is $590.48 with a high forecast of $687.99 and a low forecast of $489.24. The average price target represents a 11.53% change from the last price of $529.44.

One important thing for all investors to learn is that timing the market is impossible. And quite frankly, it's unimportant if you're investing in a high-quality S&P 500 index fund for the long term. Even if you buy at a market peak, your long-term returns should likely be excellent.

Are the “Magnificent 7” really that magnificent? Just seven stocks – Apple, Amazon, Alphabet, Meta, Microsoft, Nvidia and Tesla – account for almost 30% of the S&P 500 market cap.

Key Points. Less than 10% of active large-cap fund managers have outperformed the S&P 500 over the last 15 years. The biggest drag on investment returns is unavoidable, but you can minimize it if you're smart. Here's what to look for when choosing a simple investment that can beat the Wall Street pros.

History Says the Nasdaq Can Continue to Rise in 2024: 2 Monster Artificial Intelligence (AI) Stocks to Buy Right Now. It's been a rocky road for the Nasdaq Composite over the past few years. But after slumping 33% in 2022, it soared 43% last year, and this bullish trend has persisted into early 2024.

As per our technical analysis based current META stock forecast, the value of Meta shares will go up by 6.06% and reach around $ 535.35 per share by the end of December 2024. Looking ahead to 2025, analysts are forecasting a revenue of $179 billion for Meta, representing a 12.20% increase compared to 2024.

The bank's analysts give a positive forecast for the Dow Jones exchange rate in 2024. In their opinion, index quotes will increase by 10% to $40,000 in 2024. If the US economy avoids recession, growth could reach up to 19%. This scenario is more likely due to cooling inflation and stable GDP growth.