Goldman Sachs/Kostin: S&P 500 to Reach 6,500 by End of 2025

According to David Kostin, Goldman Sachs Group's chief strategist, the S&P 500 Index is expected to rise by the end of next year, driven by ongoing economic expansion and earnings growth in the U.S. Kostin raised his S&P 500 target for the end of 2025 to 6,500, exceeding current levels by about 10%. Previously, he had set a 12-month S&P 500 target of 6,300.

The new forecast aligns with the prediction made by Mike Wilson of Morgan Stanley, who recently raised his own forecast for U.S. equities. Kostin stated, "In our fundamental macro outlook, the economy and earnings continue to grow, and bond yields remain at current levels."

The S&P 500 has increased by 24% year-to-date, fueled by the AI boom that has driven stocks like Nvidia Corp. higher, along with the continued strength of the U.S. economy. The index still hovers near the record reached on November 11, following Donald Trump's presidential election victory.

As of mid-October, the median forecast from strategists for the end of 2025 was 6,000. Kostin's roughly 10% gain call is in line with typical calls from Wall Street in recent years.