Group 1 - Goldman Sachs has raised its S&P 500 target to 6500 points for the next 12 months, up from the previous forecast of 6200 points, indicating an expected increase of approximately 11% from the recent closing price [1] - The optimism in the market is driven by the easing of US-China trade tensions, with traders betting that a recession can be avoided [1] - Despite the positive outlook, Goldman Sachs remains cautious about the economic growth prospects and the potential limitations on stock price-to-earnings ratios in the coming months [1] Group 2 - The temporary US-China trade agreement has renewed optimism on Wall Street, with investors feeling reassured that President Trump will not allow the stock market to suffer excessively [2] - Market experts suggest that the presence of experienced negotiators like Bessent can alleviate concerns about the trade talks deviating from a constructive path [2] - However, there are still significant challenges ahead, including weakening economic growth expectations, declining corporate profits, and inflation concerns that may affect future Federal Reserve actions [2]
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