Goldman Sachs renews S&P 500 for 2026

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Prices are coming, and this is good news for the S&P 500. The question is: How big, and how much quality?

The latest job data is bad enough to force the federal reserve on its seat and reduce interest rates for the first time since late 2024, when Fed’s money rates were reduced by one percentage point.

Weakness in the widely widespread labor market, which reflects the increase in unemployment, the demobilization of workers and the least employment.

Since the encouragement of low unemployment is one of the Federal Reserve states, most Wall Street analysts are convinced that Federal Reserve Chairman Jerome Powell will change the gears and targeted functions instead of inflation in its next meeting on September 17, including Goldman Sachs.

Goldman Sachs is one of the Gold Company for Research and Analysis in Wall Street, where the roots date back to 1869.

On September 6, analysts reconsidered their S&P 500 goals for the rest of 2025 and 2026 based on price cuts.

S&P 500 works better when interest rates are turning. The Federal Reserve does not control bank lending rates, but it indirectly affects them because it determines the rate of Federal Reserve’s funds, and banks receive interest each other on reserve loans overnight.

The higher the rate, the higher the number of banks for consumer and business loans. With prices drop, bank loans are usually traced, which provides more space for male and female companies to spend and support companies, profits and stock prices.

According to the Bank of America, S&P gains 500 1.7 % On average on average during “price reduction systems”. When prices rise, they lose 0.5 % per month.

Goldman Sachs updated the S&P 500 goals of 2025 and 2026 after the unemployment report in August. Thestreet
Goldman Sachs updated the S&P 500 goals of 2025 and 2026 after the unemployment report in August. Thestreet

The Federal Reserve has resisted this year’s reduction rates, for fear of doing this that would molest inflationary fires, even with the full impact of definitions to consumer prices.

There is evidence that the Federal Reserve is not a mistake to be tense, because the Consumer Prices Index (CPI) has risen since April:

  • July: 2.7 %

  • June: 2.7 %

  • May: 2.4 %

  • April: 2.3 %

However, Goldman Sachs believes that the shift in job data this summer will surpass this fear, spoiling the way for the chairman of the Board of Directors and the company to adopt interest rate discounts soon.

Related: Bank of America declares a major shift in federal reserve reduction expectations

The unemployment rate in the United States was stuck between 4 % and 4.2 % for one year; However, Job August data showed that unemployment rose to 4.3 % – a new and higher level since October 2021, when it was 4.5 %.



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