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Goldman Sachs lifts its S&P 500 forecasts. Strategists say these three investment moves are crucial.

Why This Matters

Goldman say resilient earnings, earlier and bigger Fed rate cuts and more investor buying of stocks will drive the S&P 500 higher from here.

July 8, 2025
11:40 AM
2 min read
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Advanced ➔ Results Need to KnowGoldman Sachs lifts its S&P 500 forecasts. Strategists say these three investment moves are crucial.

Look for an 11% gain in stocks over the next 12 months, say strategistsLast d: July 8, 2025 at 7:40 a. ETFirst Published: July 8, 2025 at 6:50 a. ETResizeListen(7 min)Mr Blue Sky.

Goldman Sachs has lifted its S&P 500 forecasts, and strength from the biggest stocks is one reason for that optimism.

Photo: Getty ImagesAfter the White House kicked the tariff down the road again, investors are once again left trying to figure out what that could mean for their investments.

Beware, says Ipek Ozkardeskaya, senior analyst at Swissquote Bank, who sees a market acting “suspiciously optimistic,” and ignoring the potential fallout from tariffs on supply chains, earnings, growth and inflation.

“Assuming everything will be magically resolved in the next three weeks is seeing unicorns in the sky,” she writes.

The Author Barbara KollmeyerBarbara Kollmeyer is based in Madrid, where she leads MarketWatch's pre- coverage of financial and writes the Need to Know column.

She has worked in London and Los Angeles for MarketWatch previously. Her on Twitter @bkollmeyer. Show Conversation (0)Back To TopCopyright © 2025 MarketWatch, Inc. All rights reserved.

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FinancialBooklet Analysis

AI-powered insights based on this specific article

Key Insights

  • Inflation data often serves as a leading indicator for consumer spending and corporate pricing power
  • Earnings performance can signal broader sector health and future investment opportunities
  • Financial sector news can impact lending conditions and capital availability for businesses

Questions to Consider

  • What does this inflation data suggest about consumer purchasing power and corporate margins?
  • Could this earnings performance indicate broader sector trends or company-specific factors?
  • Could this financial sector news affect lending conditions and capital availability?

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