Banking giant Goldman Sachs is raising its year-end target for the S&P 500, pointing to stronger corporate earnings. The bank lifted its 2026 forecast to 8,000 from 7,600, reflecting continued earnings strength, according to Reuters.
The new target is 6.4% above the index's last close of 7,519.12. Goldman says earnings growth has powered the entire S&P 500 return so far this year and expects that to continue. The bank also raised its 2026 earnings-per-share forecast to $340, implying 24% annual growth.
Goldman says companies tied to AI infrastructure are expected to generate about half of the index's earnings growth this year, potentially offsetting weaker consumer spending. The call follows other bullish forecasts from Morgan Stanley and JPMorgan Chase.