Goldman Sachs Raises S&P 500 Targets: Key Drivers & What Investors Should Do

Goldman Sachs boosted its S&P 500 target to 6,400 in three months, 6,600 by year‑end and 6,900 in 12 months, up from prior calls of 5,900, 6,100 and 6,500. Here's a concise, mobile‑friendly breakdown of the factors behind the revisions and two FMP APIs to keep your strategy on track.

Why Goldman Raised Its Forecasts

• Earlier and Deeper Fed Easing
  Goldman now expects rate cuts to start sooner and go further, driving equity multiples higher.

• Lower Bond Yields
  Falling yields boost present values of future earnings, supporting a revised 22× forward P/E (up from 20.4×).

• Fundamental Strength of Mega‑Caps
  Exceptional Q1 results from large‑cap tech and consumer staples underpin confidence in long‑term growth.

Tariff Pass‑Through and Earnings Risks

• Gradual Tariff Impact
  Recent data show muted price increases so far, but full pass‑through may take quarters to filter into margins.

• Consensus Earnings
  Goldman holds 7% EPS growth for 2025 and 2026, slightly below Street forecasts for 2026—leaving room for downward surprises.

Breadth & Quality: Where the Upside Lies

• Narrow Rally
  The median S&P 500 stock trades 10% below its 52‑week high, suggesting a breadth expansion ahead.

• Selective Exposure
  Goldman favors large‑cap quality names over small‑caps and “lower‑quality” stocks, expecting a broadening of leadership.

Actionable Insights

1. Monitor Fed Meeting Dates
   Pull upcoming FOMC and policy minutes via the Economics Calendar API: Economics Calendar API

2. Track Forward P/E Multiples
   Keep an eye on the S&P 500's evolving valuation with the Ratios TTM API: Ratios TTM API

Conclusion
Goldman's sharper S&P 500 targets reflect a more dovish Fed, lower yields and the prospect of rally breadth expansion. By syncing your models to the Economics Calendar API and Ratios TTM API, you can stay aligned with these key drivers and spot entry points.