Goldman Sachs (GS) Lifts S&P 500 Forecast After U.S.-China Tariff Truce

Faizan Farooque

Tue, May 13, 2025, 1:33 PM 1 min read

Goldman Sachs (GS, Financials) raised its short- and long-term S&P 500 forecasts Tuesday aft the U.S. and China agreed to little tariffs connected each other's imports for a 90-day period.

• Warning! GuruFocus has detected 4 Warning Signs with GS.

The slope present expects the S&P 500 to emergence 1% implicit the adjacent 3 months to astir 5,900, up from its earlier projection of 5,700. Over the adjacent 12 months, Goldman forecasts 11% growth, targeting 6,500 compared to its erstwhile 6,200 estimate.

Goldman attributed the revised outlook to little tariff rates, amended economical growth, and little recession risk. The U.S. medication is cutting tariffs connected Chinese goods to 30% from 145%, portion China volition trim its tariffs connected American imports to 10% from 125%.

The S&P 500 roseate 0.8% successful caller trading and is up 4% this week, arsenic investors respond to signs of easing geopolitical tensions.

Goldman's much bullish stance reflects broader optimism that a intermission successful commercialized hostilities could enactment planetary firm net and prolong marketplace momentum.

Investors should show developments up of the 90-day deadline and upcoming economical information for immoderate shifts successful sentiment.

This nonfiction archetypal appeared connected GuruFocus.