Will S&P 500 scale new record highs in 2024?

In a strong start to the year, the US S&P 500 index managed to pierce the psychological level of 5,000, scaling a record high at 5,048 on February 12.

This stunning start led major banks and financial institutions to expect even more gains and record highs for the index throughout 2024. 

Goldman Sachs 

Goldman Sachs’ strategic analysts raised their S&P 500 price target for the second time this year, after the index pierced 5,000 points for the first time ever.

The analysts team said the upward revision comes as major Wall Street banks beat profits expectations. 

The investment bank now expects the index to scale 5,200 points by the end of the year. 

The new target is nearly 4% higher from the Friday February 16 close. It’s worth noting that Goldman Sachs in November 2023 expected S&P 500 to reach only 4,700 by the end of 2024. 

The new estimate is highly optimistic and bullish towards the US stock market.  

Huge Gains 

The S&P 500 rallied 4.9% so far this year as markets expect the Federal Reserve to start easing policies, and amid growing optimism for the burgeoning AI field. 

Strong Profits 

Goldman Sachs’ analysts said the profits growth for major corporations is the main driver for maintaining upward momentum this year and reaching the 5,200 target. 

The S&P 500 companies expected to show profits growth of 8.8% in 2024 compared to last year.

Bank of America's Forecasts 

Bank of America’s analysts said in a recent memo they’re willing to upgrade the price target for the S&P 500 as investors remain too cautious compared to fundamentals.