Wall Street sentiments are high! Goldman Sachs strategist shouts: the S&P 500 index will far exceed 6,000 points by the end of the year

The Zhitong Finance App learned that Goldman Sachs strategy expert Scott Rubner said on Tuesday that the stock market seems ready to rebound at the end of the year, which may push the S&P 500 index through the 6,000 mark.

The day before Rubner made these remarks, the S&P 500 closed at 5859.85 points and hit the 46th closing high in 2024. Rubner said in early October that he was “tactically bearish” on the US stock market for the next three weeks, but now he believes that some unfavorable factors are fading away and the stock capital flow trading environment will show a positive trend.

“The sell-off in the stock market is over, and the rebound at the end of the year is beginning to resonate, and customers are shifting from left-tail hedging to right-tail hedging,” Rubner said. “Institutional investors are now being forced to enter the market given the 'FOMU' (fear of falling seriously behind).”

Rubner said Goldman Sachs's trading department has been answering questions about the best execution strategy for a potential “Trump deal” rebound. “This is a new situation that has extended the stock market's rebound.”

Forecasting platforms such as PolyMarket and PredictIT show that former President Donald Trump is leading Vice President Kamala Harris in the US presidential campaign. Meanwhile, polls show that competition between the two is still fierce.

Factors driving the rise in the stock market include that the purchase restriction period for US companies will expire on October 25, and this market group is the biggest buyer of the US stock market this year. Rubner said companies are likely to buy about $6 billion in shares every day until the end of the year.

As the biggest seller in the market, Mutual Fund faces a deadline of October 31.

“For tax reasons, the selling pressure on the laggards in the stock market will ease in 2024, while the buying pressure on the stock market winners will ease, creating a potential rebound led by cyclical stocks and popular Republican stocks.”

Meanwhile, Rubner said households tend to buy stocks in November, a trend that was stronger during the election year, while key market health indicators — gamma and liquidity — also improved.

Rubner said, “I think the S&P 500 will be well over 6,000 points by the end of this year.”

According to reports, as the US stock market ushered in the strongest rebound in nearly 30 years, Wall Street strategists have raised their predictions for the US stock market. Rubner raised the forecast for the fourth time since the last few months of 2023 and gave Wall Street's second-highest year-end target. BMO's Brian Belski is the most optimistic. In September, he predicted that the S&P 500 could soar to 6,100 points before the end of the year.