Goldman Sachs lifts S&P 500 target on vaccine hopes, Biden win

This post was originally published on this site

“Despite investor focus on the prospective policy implications of the Biden presidency, the vaccine for COVID-19 is a more important determinant of the path of both the economy and stock market in 2021,” the U.S. investment bank wrote in a note to clients.

It sees the S&P 500 hitting 4,300 at year-end 2021, a 21% jump from Tuesday’s closing levels.

In Europe, Goldman expects a strong bounce in profits in 2021 as lockdowns ease and populations start to be vaccinated. It raised its 12-month target for the STOXX 600 (STOXX) to 430 points, an 11% jump from current levels.

Value stocks, typically companies that are more sensitive to economic cycles, have been soaring since Pfizer (NYSE:PFE)’s announcement on Monday of positive data from its vaccine trial, raising hopes of an economic recovery.

JPMorgan (NYSE:JPM) said on Monday that it expected the S&P 500 to hit 4,000 points by early 2021.

Add Comment