Goldman Sachs strategists are optimistic about US stocks heading into 2027, forecasting a 14% rise in the S&P 500 over the next year. This bullish outlook follows a recent selloff in major technology companies, which has pushed their valuations to historically low levels. The team, led by Peter Oppenheimer, expects the S&P 500 to reach 8,700 points despite anticipating a significant slowdown in earnings growth for the benchmark index.
The strategists are particularly bullish on the US and Japan for the coming year. They highlighted that the S&P 500 has already gained 11% so far in 2026, setting a solid foundation for further growth. The note to clients emphasized the attractiveness of current valuations in the hyperscaler sector, which includes some of the largest technology firms.