Goldman Sachs Predicts S&P 500 to Reach 6,500 Points by End of 2025

Goldman Sachs has projected that the S&P 500 Index, a key benchmark for U.S. stock markets, will reach 6,500 points by the end of 2025, according to a report released by the investment bank.

The report emphasizes that the current valuations on Wall Street reflect an optimistic outlook for U.S. economic growth. Projections suggest that the U.S. GDP will expand by 2.5% in 2025, followed by a 2.3% increase in 2026.

It also highlighted that a significant portion of the impressive 57% gain in the S&P 500 since the end of 2022 can be attributed to the exceptional performance of the "magnificent seven" — a group of prominent technology companies.

Furthermore, the report pointed out that the valuations of these major tech stocks are nearing their fair value, leading to expectations of a slowdown in their outperformance relative to the broader market starting in the coming year.

Read also:

Strong drop in futures for U.S. stock market indices ahead of the opening

U.S. stocks open today's session with a collective decline