U.S. investment bank Goldman Sachs (GS) is forecasting that the S&P 500 index will rise about 10% in 2025 and reach 6,500 by the end of next year.
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Goldman Chief Equity Strategist David Kostin says U.S. economic expansion and strong earnings growth will continue to drive U.S. equity markets to new heights in 2025. Kostin sees the S&P 500 increasing 10% from current levels and ending next year at 6,500. He previously forecast a 2025 target of 6,300 for the benchmark S&P 500.
Goldman’s latest forecast comes a day after rival investment bank Morgan Stanley (MS) forecast that the S&P 500 index could rise as high as 7,400 next year, which would be a 25% gain. Analysts at Morgan Stanley also see U.S. stocks continuing to rise on robust corporate earnings and a strong U.S. economy.
Risks Remain
The S&P 500 has risen 24% so far this year and is currently trading near all-time highs due largely to the boom in artificial intelligence (AI) stocks such as Nvidia (NVDA). However, Kostin noted that despite his bullish outlook, risks for U.S. equities remain high and include fewer interest rate cuts from the U.S. Federal Reserve and proposed trade tariffs.
Other 2025 predictions from Goldman Sachs include that the “Magnificent 7” technology stocks that include Apple (AAPL) and Meta Platforms (META) will continue to outperform the rest of the S&P 500 index. And merger and acquisition (M&A) activity will pick-up after several down years.
Goldman Sachs own stock has risen 54% this year.
Is GS Stock a Buy?
The stock of Goldman Sachs has a consensus Strong Buy rating among 15 Wall Street analysts. That rating is based on 12 Buy, 3 Hold, and no Sell recommendations issued in the last three months. The average GS price target of $574.57 implies 1.47% downside risk from current levels.
