Investment bank Goldman Sachs (GS) is forecasting that a year-end rally in U.S. stocks will push the benchmark S&P 500 index up as much as 4% to close out 2024 at the 6,200 level.
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The Wall Street firm is forecasting that the year-end rally will begin this week heading into the U.S. Thanksgiving holiday weekend. The S&P 500 is currently trading just above 6,000, having gained 25% so far this year.
In a note to clients, Scott Rubner, a Managing Director at Goldman Sachs, says that stocks will be powered higher through year’s end by retail investors’ continued appetite for for both stocks and cryptocurrencies. Rubner adds that stocks are likely to get an additional boost as corporate share buybacks accelerate into year’s end.
Post-Election Rally
Goldman Sachs notes that a rally in U.S. stocks has been building as equities have seen their largest three-month inflows since 2021. Those inflows have quickened since the November 5 U.S. presidential election, with the S&P 500 gaining 3.2% and the Russell 2000 index of small-cap stocks rising 6.5%.
Goldman Sachs says that in a typical election year, stock market rallies extend into January and only begin to fade around inauguration day on January 20. Rubner wrote in his note that he remains bullish on U.S. stocks heading into 2025.
GS stock is up 60% this year.
Is GS Stock a Buy?
The stock of Goldman Sachs has a consensus Strong Buy rating among 14 Wall Street analysts. That rating is based on 11 Buy, 3 Hold, and no Sell recommendations issued in the last three months. The average GS price target of $589.00 implies 2.70% downside risk from current levels.
