Global equities could sustain their upward momentum through the end of 2025, buoyed by a robust US economy, attractive valuations, and the Federal Reserve’s recent dovish adjustment, according to strategists at Goldman Sachs Group Inc.
Goldman’s team noted that equities have typically excelled during late-cycle economic slowdowns, especially when monetary policy remains accommodative. The strategists emphasized that policy support has historically provided a tailwind for the asset class in such periods.
Recent optimism surrounding the Federal Reserve’s move to reduce interest rates—aimed at forestalling a recession—has propelled global stock markets to record levels. The renewed surge in artificial intelligence enthusiasm has further bolstered heavyweight technology names, prompting many US analysts to upgrade their forecasts for the S&P 500 index.
Earlier this year, Goldman’s strategists revised their outlook for the S&P 500, now anticipating a gain of up to 2% from current levels, targeting 6,800 points over the next three months.
Despite the positive outlook, Goldman cautioned that risks tied to unexpected moves in economic growth or interest rates remain in the near term. The team maintained a neutral stance across major regions, while continuing to advocate for international diversification in investor portfolios.
