Bullish Bets: Goldman and Deutsche Refuse to Back Down on S&P 500

Goldman Sachs and Deutsche Bank are standing firm on their bullish outlook for the S&P 500, dismissing concerns of an earnings bubble. Ben Snider, Goldman's chief U.S. equity strategist, argues that a bubble implies earnings about to pop, which he doesn't see happening. The firm projects another quarter of double-digit growth starting next week.

Deutsche Bank echoed this confidence, reaffirming its year-end target of 8,000 points for the benchmark index. The bank's equity strategy team highlighted several factors supporting their optimistic stance, including third-quarter earnings expected to deliver roughly 30% year-over-year growth and a history of positive fourth-quarter returns following mid-term election years.

While some deceleration in earnings growth is likely as fiscal tailwinds fade and energy costs rise, Snider expects results to remain robust. He notes that investor positioning currently sits at its lowest level since March, which could fuel further upside if catalysts such as falling oil prices or lower rates materialize.

Both firms agree that extraordinary earnings growth seen throughout 2026 will likely moderate somewhat, yet neither expects a collapse as long as companies continue to deliver double-digit or high-teens profit expansion backed by AI-related investment and a resilient broader economy.