Goldman Sachs sees S&P 500 hitting 6,500 in 2025 amid 'narrowing' Big Tech outperformance

Published On Nov 19, 2024, 10:06 AM

Goldman Sachs has projected that the S&P 500 will reach 6,500 by the end of 2025, indicating a potential gain of about 11% from current levels. This optimism is supported by expectations of continued economic growth and stability in bond yields. However, the firm notes that the dominance of major technology stocks, known as the 'Magnificent Seven,' is expected to narrow, resulting in a more balanced performance across the S&P 500. In anticipation of increased M&A activities and a revival of small business optimism, Goldman Sachs suggests investing in companies tied to small businesses and those likely to benefit from AI advancements, particularly Apple and Meta.

Stock Forecasts

Goldman Sachs' positive outlook for the S&P 500 suggests a growing environment for equities. The forecast of 6,500 indicates healthy economic conditions, favorable earnings growth, and a likely shift in market dynamics away from over-reliance on a few tech giants. Moreover, the wave of potential M&A activity and small business growth could lead to significant investment opportunities within the S&P 500.

Related News

(Bloomberg) -- Ukrainian forces carried out their first strike on a border region in Russia using Western-supplied missiles as President Vladimir Putin approved an updated nuclear doctrine expanding the conditions for using atomic weapons. Most Read from BloombergParis to Replace Parking Spaces With TreesNew York’s Transit Agency Approves $9 Congestion TollIn Cleveland, a Forgotten Streetcar Bridge Gets a Long-Awaited LiftA Bug’s Eye View of Mexico City’s Modernist ArchitectureAmtrak Wins $300 M

SPY
LMT

Republicans are juggling complex political and tactical questions as they plan their congressional agenda next year.

XLF
SPY

Donald Trump’s choice of former SEC boss Jay Clayton to lead an office of federal prosecutors with a history of pursuing financial crimes is notable for its complete lack of controversy — especially on Wall Street.

SPY
XLF