Goldman Sachs(US:GS) Zhi Tong Cai Jing·2025-09-22 04:05Group 1 - Goldman Sachs' chief U.S. equity strategist David Kostin indicates that the Federal Reserve's decision to initiate monetary policy easing is likely to extend the upward cycle of the U.S. stock market [1] - Kostin expects the S&P 500 index to close at 6200 points by the end of 2025, suggesting moderate upside potential from current levels, with the possibility of higher gains if inflation continues to decline and the Fed maintains an accommodative stance [1] - Interest-sensitive sectors such as real estate, financials, and certain technology companies related to capital expenditures are expected to be the biggest beneficiaries of the Fed's easing policies [1] Group 2 - Kostin warns that the stock market's rise is not without risks, including persistent wage pressures and rising input costs that could impact corporate profit margins [2] - The upcoming mid-term elections in 2026 may introduce political uncertainties that could dampen market sentiment [2] - Goldman Sachs projects that the earnings per share (EPS) growth for S&P 500 constituents will reach 7% in both 2025 and 2026, indicating that despite current high valuations, the market is approaching reasonable value given the macroeconomic environment and corporate fundamentals [4]