The US S&P 500 index had a great start to the year, breaking through the psychological barrier of 5,000 and reaching a record high of 5,048 on February 12.
Major banks and financial institutions predicted even further rises and record highs for the index throughout 2024 as a result of this astounding start.
Goldman Sachs
After the index broke beyond 5,000 points for the first time ever, Goldman Sachs' strategic analysts increased their target price for the S&P 500 for the second time this year.
The analysts' team stated that the increase is a result of major Wall Street banks exceeding profit projections.
As of right now, the investment bank projects that the index will rise by 5,200 points by year's end.
The revised goal is about 4% higher than the close on Friday, February 16. Notably, Goldman Sachs predicted in November 2023 that the S&P 500 would only hit 4,700 by the end of 2024.
The updated projection is incredibly bullish and hopeful about the US stock market.
Significant Gains
The S&P 500 has increased 4.9% so far this year as investors anticipate the Federal Reserve to begin loosening its rules and as hope for the developing field of artificial intelligence grows.
Hefty Profits
According to Goldman Sachs analysts, the primary factor sustaining this year's rising trend and achieving the 5,200 target is the growth in profits for large firms.
In 2024, the S&P 500 businesses are projected to report an 8.8% increase in earnings over the previous year.
Bank of America Forecast
In a recent document, Bank of America analysts stated that they would be happy to raise the price objective for the S&P 500 since investors are still overly cautious in light of the fundamentals.
