Goldman Predicts S&P 500 Could Reach 6000 Due to Megacap Bull Case

Goldman Sachs maintains its year-end S&P 500 forecast at 5,200 but envisions a scenario where tech megacaps could propel the index to 6,000, driven by potential valuation expansion. The firm attributes its current prediction to fully priced federal funds rate path and economic-growth trajectory by markets. Other scenarios explored include a "catch-up" to pre-pandemic valuations and more bearish outcomes related to sales-growth estimates and recession risk.