Goldman Sachs predicts slow inflation recovery for US economy.

1 min read
Source: MarketWatch
Goldman Sachs predicts slow inflation recovery for US economy.
Photo: MarketWatch
TL;DR

Strategists at Societe Generale have increased their year-end S&P 500 target to 4,300, citing the 500 points added to the index by "AI boom" stocks. They also note positive signals such as a 3-4% increase in S&P 500 earnings per share and improving profit margins. However, they still see macroeconomic concerns and predict a drop in the S&P 500 to 3,800 by the first half of 2024 due to profit-margin reversal, credit weakness, and rising recession risk. The positive risk is that the AI boom feeds into the market, while the negative risk is anything that leads oil to move above $100 per barrel.

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