Wall Street Optimism: S&P 500 Targets Revised Upwards Amid Economic Shifts

BofA Global Research and Goldman Sachs have revised their year-end targets for the S&P 500 index upwards in response to diminishing policy uncertainties and expectations of reduced interest rates. BofA increased its target from 5600 to 6300, while Goldman adjusted from 6100 to 6600, suggesting a 1% to 6% upside from the recent close.

This marks the second increase by Goldman in as many months, with earlier concerns of a U.S. recession and global trade tensions, sparked by tariffs, receding. These factors earlier led major brokerages to lower their targets below 6,000. The easing of some tariff rates has eased investor fears, pushing stocks to new highs.

Goldman anticipates that steady earnings growth in 2026, coupled with possible Federal Reserve interest rate cuts, will continue to support the market. The brokerage has also elevated its short-term S&P 500 targets, amid softening inflation data and a new tariff deadline announced by President Trump that could affect 14 nations.

(With inputs from agencies.)