Goldman Sachs has raised its year-end target for the S&P 500 index to 8,000 points due to strong earnings prospects.

Goldman Sachs has raised its year-end forecast for the S&P 500 index in 2026 from 7,600 points to 8,000 points, citing continued strong corporate profits. This target value is 6.4% higher than the index's most recent closing price of 7,519.12 points. In a report on Tuesday, Goldman Sachs stated, "So far, earnings growth has been the main driver of overall returns for the S&P 500 index, and we expect this trend to continue in the coming months." The investment bank also raised its earnings per share forecast for the S&P 500 index in 2026 to $340, implying a 24% year-over-year increase; and in 2027, it was raised to $385, a further increase of 13%. Goldman Sachs' move further fueled the wave of bullish expectations among investment banks. Just last week, UBS GWM raised its outlook, citing the potential for strong artificial intelligence-driven profits to help offset inflationary pressures and supply risks from the conflict in Iran. The bank stated that beneficiaries of artificial intelligence infrastructure are expected to drive about half of the index's profit growth this year, and added that although weak consumer spending and rising costs pose risks, strong AI investments will offset these pressures. Goldman Sachs analysts said, "Furthermore, although the earnings growth expectations for the S&P 500 index are faster than the index's price increase, semiconductor stocks at the core of AI infrastructure have recently outperformed their forward-looking earnings."