Goldman Sachs raises S&P 500 target for year

The Federal Reserve lowering its benchmark interest rate last week has Goldman Sachs more excited about stocks heading into the final quarter of the year. Strategist David Kostin raised his 2025 S & P 500 target to 6,800 from 6,600. That signals upside of 2% from Friday's close of 6,664.36. The S & P 500 has been on a tear this year, rising more than 13% as the artificial intelligence boom continues to drive up share prices and earnings expectations. Now that the Fed has restarted its easing campaign, Goldman sees more upside ahead for equities. "Our economists expect two additional 25 bp cuts to the policy rate this year and two 25 bp cuts in 2026, roughly in line with market expectations," Kostin wrote in a note to clients, referring to quarter-point moves in the fed funds rate. "With ou