Daily Management Review

Goldman Sachs raises 2024 forecast for S&P 500 to 5100 points


Analysts at Goldman Sachs drastically raised the Standard & Poor's 500 stock index prediction for 2024, going from 4700 points in November to 5100 points.

The S&P 500 was valued at 4719 points at the conclusion of business on December 15, meaning that the index is expected to expand by roughly 9%. The index grew by 22.9% since the start of 2023 and is quite close to reaching an all-time high.

According to David Kostin, chief strategist for U.S. equities at Goldman Sachs, the stock market will be supported by the anticipated loosening of monetary policy and a decrease in inflation.

Although the expert admits that growth could be much greater if monetary policy were to loosen, it nevertheless projects a 5% increase in profits for S&P 500 index businesses by 2024.

Kostin also mentioned how high interest rates have allowed money funds to raise $1.4 trillion since the year's commencement. He noted that these funds might eventually go into stocks.

source: bloomberg.com