Wall Street’s bulls aren’t backing down. Goldman Sachs strategists project the S&P 500 climbing 7% to 7,600 by year-end 2026, fueled by robust earnings growth that outpaces economic headwinds. This call echoes through a market that’s already surged 12% since late March lows, shrugging off $4-a-gallon gasoline and oil-price jitters tied to U.S.-Iran tensions. Ben Snider, Goldman’s chief U.S. equity strategist, puts it bluntly: “The US equity market should continue to make new highs in coming months on the back of continued earnings growth.” Yahoo Finance captured that optimism in a recent analysis, noting how equities often rebound before clear economic signals, just as in 2009 and 2020.
And the numbers stack up. Goldman forecasts S&P 500 earnings per share jumping 12% to around $309 this year, then 10% to $342 in 2027. That’s no small feat. AI adoption drives much of it—healthy revenue growth among mega-caps, plus an emerging productivity lift across sectors. Snider highlights secular growth plays with “idiosyncratic earnings tailwinds and limited AI disruption risk,” like power infrastructure firms. Think Broadcom, Nvidia, AMD, Amazon, Meta, Micron. Investors should tilt there, away from cyclical bets on broad growth. Goldman Sachs Research laid out the case in January, projecting a 12% total return for 2026, the fourth straight year of gains amid Fed easing and 2.6% GDP expansion.
But rewind a bit. This isn’t Goldman’s first bullish tweak. Post-Trump election in late 2024, they eyed 6,500 by end-2025 on tax cuts and targeted tariffs—moves expected to stoke inflation but boost corporates. Reuters reported that shift. Fast-forward through tariff bites and Iran flare-ups: March saw a reset to 7,600, as AI productivity gains broadened earnings beyond tech giants. Yahoo Finance again, March 16. The firm doubled down days later, citing a “Goldilocks” setup with Fed rates stabilizing at 3%-3.25%. Yahoo Finance.
Markets agree—so far. The S&P closed above 7,100 for the first time ever on April 21, up 11% from March troughs after Trump extended the Iran ceasefire indefinitely. Stocks rose on that news. Yet risks lurk. Oil can’t spike past $150-$200 a barrel, or trouble brews. Earnings from the Magnificent Seven and industrials must deliver; weak outlooks could humble the herd. Market breadth narrows—top stocks dominate like dot-com days. Goldman’s U.S. Equity Sentiment Indicator hit -0.9 recently, a contrarian buy signal historically. Yahoo Finance, late March.
X chatter amplifies the vibe. Brian Sozzi, Yahoo Finance executive editor, reposted Goldman’s note: fresh highs ahead. Traders note 87.5% of reporting S&P firms beating estimates, crushing the 67% norm. J.P. Morgan hiked its target too, on AI earnings. Posts from @DeItaone and @BrianSozzi lit up feeds April 22, with funds rotating global but U.S. bulls holding firm.
Broader Street aligns, mostly. Median forecast from 19 firms: 7,600 end-2026, 11% upside from recent 6,858. Fundstrat, Yardeni at 7,700; HSBC 7,500; BofA more cautious at 7,100. Yahoo Finance, January. JPMorgan sees 7,000 early 2026 on AI and capex. AOL Finance. Even post-tariff overhauls, Goldman stuck to growth. TheStreet, March 2025.
What powers this? AI, sure—40% of EPS lift. But broadening matters. Non-tech catching up in a “broad-based marathon.” Fed’s soft landing. Fiscal tailwinds, despite deficits. Trump policies: deregulation lifts financials, energy; tariffs hit imports but spare U.S. producers. No recession—GDP hums at 2.5%-2.6%, unemployment low. Seasonals favor Q4.
Tilt smart. Goldman favors power infra over cyclicals. Recent growth-stock valuation compression helps. X users echo: @Aris_Salvanos flags narrowed breadth, consensus estimates up 4% since January. @QuantumAlphaCap quotes the 7,600 call directly.
Nothing straight-lines up. Pullbacks? Likely. Buy weakness, as Sevens Report’s Tom Essaye told Yahoo: peak war panic’s past, so long as oil stays tame. Upcoming earnings loom large—Magnificent Seven, industrials. Deliver, and 7,600 looks easy. Falter? Reality check.
Goldman’s track record? Mixed—raised to 6,800 in September 2025 from 6,600. U.S. News. But in this earnings-led grind, with AI diffusion and policy pop, the bull case holds weight. Insiders watch breadth, sentiment, oil. The rip higher? Just getting started.
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