Goldman Sachs: It is expected that the S&P 500 index will rise by another 10% in the next 12 months, with a target of 6900 points.

Goldman Sachs strategist David Kostin expects that the S&P 500 index will rise another 10% in the next 12 months to 6900 points, driven by strong blue-chip earnings performance and investor optimism about next year's growth prospects. Last week, the index rallied on news of strong blue-chip earnings, approaching its record high. Kostin believes that although tariff risks are still present, concerns have significantly decreased and investors' views on the economy and corporate profits have improved, becoming the main reasons driving the US stock market higher. The US economy is expected to perform better than expected in the coming quarters, and industries sensitive to the economic cycle are believed to be the main drivers of the market's rise. Kostin also pointed out that the weakness of the US dollar has a positive impact on US stocks, as multinational company profits will increase due to exchange rate gains. The US Dollar Index has fallen by 7% so far this year, and Goldman Sachs estimates it will fall another 4% by the end of the year. Kostin predicts that a 10% decline in the US dollar will drive S&P 500 earnings up by 2% to 3%. However, trade conflicts will continue to affect the outlook for the stock market, although Trump's tariffs are expected to be lower than initially feared. Additionally, weak job market and weakening consumer spending are also negative factors.