Goldman Sachs forecasts 11% rise for S&P 500 in 2025 without reliance on tech giants
Goldman Sachs has projected an 11% rise in the S&P 500 for 2025, expecting the index to reach 6,500. This forecast aligns with Morgan Stanley's recent prediction and marks a shift away from reliance on the "Magnificent Seven" tech stocks. The "Magnificent Seven"—Apple, Microsoft, Amazon, Alphabet, Meta, Nvidia, and Tesla—have significantly outperformed the rest of the S&P 500 in recent years. However, their dominance is expected to decline in 2025, with their outperformance margin projected to shrink to seven percentage points. Earnings growth for these tech giants is also forecasted to slow, with their advantage over the rest of the index expected to drop from 30 percentage points in 2024 to just 6 in 2025. This indicates a potential shift in market leadership toward a more diverse range of sectors.