Banking giant Goldman Sachs is raising its year-end target for the S&P 500 as the financial powerhouse points to stronger corporate earnings.
Goldman has lifted its 2026 year-end forecast for the index to 8,000 from 7,600, citing continued strength in earnings, reports Reuters.
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The new target is 6.4% above the S&P 500’s last close of 7,519.12, according to the report. Goldman says earnings growth has powered the entire S&P 500 return so far this year and expects the same dynamic to continue in the coming months.
The bank also raised its earnings-per-share forecast for the S&P 500 to $340 for 2026, implying 24% year-over-year growth.
Goldman says companies tied to AI infrastructure are expected to generate about half of the index’s earnings growth this year.
The bank says AI infrastructure beneficiaries could help offset weaker consumer spending and elevated costs. Goldman also says semiconductor stocks tied to the AI infrastructure
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