Wall Street Optimism: BofA and Goldman Sachs Raise S&P 500 Targets Amid Economic Shifts

BofA Global Research and Goldman Sachs have raised their year-end targets for the S&P 500 index, driven by reduced policy uncertainty, resilient corporate earnings, and potential interest rate cuts. This is amid reduced tariff concerns and increased optimism for 2026 earnings growth and Fed rate cuts.

In a move signaling increased confidence in the U.S. stock market, BofA Global Research and Goldman Sachs raised their year-end targets for the S&P 500 index on Tuesday. The adjustments are attributed to reduced policy uncertainty and expectations for future interest rate cuts, which could bolster corporate earnings.

Goldman Sachs' update marks its second upward revision in two months, motivated by declines in tariff tensions and optimistic economic indicators. Earlier, significant brokerages had lowered their targets over recession fears sparked by tariff hikes under the Trump administration. However, economic data suggests decreased recession risks, easing investor anxiety.

The latest revisions reflect a broader industry trend, with other firms like Barclays, Citigroup, and Deutsche Bank also lifting their targets. Investors are hopeful that softer economic data will prompt further rate cuts by the Federal Reserve, enhancing market conditions as global trade tensions continue to simmer.

(With inputs from agencies.)