Goldman Sachs, Morgan Stanley See S&P 500 Growth

Goldman Sachs and Morgan Stanley both predict significant growth for the S&P 500 index by the end of 2025, with targets set at 6,500, reflecting a 10-11% increase over current levels. Goldman Sachs' David Kostin cites continued economic expansion and earnings growth as key drivers, while Morgan Stanley's Michael Wilson emphasizes sustained earnings growth and a supportive monetary policy. Both institutions suggest that Federal Reserve rate cuts and a business-friendly administration could further boost market performance. Morgan Stanley projects a wider range of outcomes, with a bull case of 7,400 and a bear case of 4,600. The 'Magnificent 7' tech stocks are expected to continue outperforming, albeit by a smaller margin, and financials are recommended for overweight positions due to potential deregulation benefits. However, risks remain from potential policy changes, tariffs, and inflation concerns.