A Goldman Sachs sign is seen at the company's post on the floor of the New York Stock Exchange.
REUTERS / Brendan McDermid
Goldman Sachs raised its annual price target for the US benchmark S&P 500 index by 3% to 3,100 points on Tuesday, but revised its earnings estimates, citing weakness in economic activity and marginal prospects.
In a research note, the Wall Street giant lowered its 201
However, despite the income pressure, there is still a positive increase in the stock markets. The new price target for the S&P 500 implies a 24% full-year gain for 2019. It also set a 2020 price target of 3,400, a 10% increase from the 2019 target.
"The stupid Fed pivot has driven the stock market in 2019, and we expect low interest rates to continue to support above-average valuations in the future," the note said.
The overall forecast will see the US stock market extend a decade-long bull run into another year, breaking the daily record released last week. The S&P 500 closed at 3,020 points on Monday.
Investors expect the Federal Reserve to cut interest rates by a quarter on Wednesday, with some analysts pricing in a further cut before the end of the year. Goldman analysts suggested several strategies for investors, including "adding selective exposure to cyclical stocks such as transportation" and favoring health professionals and services over pharmaceuticals.