XM does not provide services to residents of the United States of America.

Goldman Sachs raises S&P 500 year-end target to 5,600

<html xmlns="http://www.w3.org/1999/xhtml"><head><title>UPDATE 1-Goldman Sachs raises S&P 500 year-end target to 5,600</title></head><body>

Updates with Evercore ISI's 2024 S&P 500 forecast in paras 9,10

June 17 (Reuters) -Goldman Sachs has raised its 2024 year-end target for the S&P 500 Index .SPX to 5,600 from 5,200, citing strong earnings growth by five mega-cap U.S. tech stocks and a higher fair value price-to-earnings ratio multiple.

Microsoft MSFT.O, Nvidia NVDA.O, Google GOOGL.O, Amazon.com AMZN.O, and Meta Platforms META.O have collectively surged by 45% and now comprise 25% of the S&P 500 equity cap, the brokerage wrote in a note after markets closed on Friday.

"The drivers of the rally include upward revisions to consensus 2024 earnings estimates for these same tech companies, and valuation expansion stemming from increased investor enthusiasm about artificial intelligence (AI)," it added.

The upgraded target reflects an upside of about 3.1% to the index's last close of 5,431.60.

The brokerage expects roughly unchanged real yields by the year-end and strong earnings growth to support a 15x P/E for the equal-weight S&P 500 Index.

"The (U.S.) election remains a key risk to the S&P 500 level and falls between our 3-month and year-end forecast horizons," said analysts at Goldman Sachs.

The United States will hold its next presidential election in November this year.

The brokerage added that index volatility increases before the election during election years, but following the election, volatility typically subsides and the S&P 500 index rebounds to an even higher level.

Meanwhile, Evercore ISI, in a note on Sunday, had raised its year-end target for the benchmark index to 6,000 from 4,750, expecting earnings to grow 8% this year on the back of strong potential from the AI "revolution".

The brokerage upgraded the information technology sector to "outperform" from "in line", saying the sector benefits from structural demographic trends and persistence of AI frenzy.

Reporting by Reshma Rockie George and Roshan Abraham in Bengaluru; Editing by Sherry Jacob-Phillips, Rashmi Aich and Krishna Chandra Eluri


Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.

All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.

Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.

Risk Warning: Your capital is at risk. Leveraged products may not be suitable for everyone. Please consider our Risk Disclosure.