SPY - S&P 500 Index Year-End Target Raised To 5600 By Goldman Sachs On Strong Tech Earnings And Valuation Expansion | Benzinga
Goldman Sachs Group has revised its year-end target for the S&P 500 Index to 5,600, up from the previous 5,200. The adjustment is attributed to the robust earnings growth of five major U.S. tech companies and an increased fair value price-to-earnings ratio.
What Happened: The revised target reflects a 3.1% increase from the index’s most recent close of 5,431.60, reported Reuters. The brokerage firm anticipates a steady real yield by year-end and strong earnings growth to maintain a 15x P/E for the equal-weight S&P 500 Index.
Microsoft Corp (NASDAQ:MSFT), NVIDIA Corp (NASDAQ:NVDA), Google’s parent company Alphabet Inc (NASDAQ:GOOG) (NASDAQ:GOOGL), Amazon.com (NASDAQ:AMZN), and Meta Platforms (NASDAQ:META) have collectively surged by 45% and now represent a quarter of the S&P 500 equity cap, as stated in a brokerage note released after Friday’s market close.
“The drivers of ...