Goldman Sachs raises year-end target for US stocks

Goldman Sachs has raised its year-end target for US equities, citing the Federal Reserve’s cautious policy stance and strong corporate earnings.

In a note issued late last week, the bank lifted its forecast for the S&P 500 Index to 6,800 from 6,600 previously.

The move followed the Fed’s first rate cut since December last week and signals of further reductions at its October and December meetings amid signs of labor market weakness.

Goldman analysts had earlier expected quarter-point cuts at both meetings, in line with most forecasts.