Goldman Says Megacap Bull Case Might Take S&P 500 to 6,000

  • Strategists still expect gauge to end year near current levels
  • Trajectory of US stock valuations is uncertain: strategists
Photographer: Michael Nagle/Bloomberg
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Goldman Sachs Group Inc. strategists are sticking with their year-end S&P 500 forecast level of 5,200, but have a scenario in which tech megacaps lead the index up another 15%.

The firm is sticking with its current prediction because the federal funds rate path and economic-growth trajectory are fully priced by markets, strategists led by David Kostin wrote in a note. As the outlook for valuations was uncertain, the analysts explored potential scenarios outside of the base case.