The recent wobble for the stock market has not changed Goldman Sachs’ expectation for a major rally before the end of the year.
Goldman’s chief equity strategist David Kostin said in a note to clients on Monday evening that his year-end S&P 500 price target for 2021 is still 4,700, which is 9.3% above where the index closed on Monday.
“Our year-end 2021 target of 4700 implies a 9% gain from the current level and ranks in the 83rd percentile of 4Q returns since 1928,” Kostin said in the note.
Kostin is one of the more bullish strategists on Wall Street, with the second-highest target in CNBC’s Market Strategist Survey. The highest target is from BMO’s Brian Belski at 4,800. Strategists from several major shops, including Morgan Stanley’s Mike Wilson, have price targets of just 4,000.
Kostin first raised his target to 4,700 in August.
Kostin noted that that average time between 5% pullbacks was 95 days, or roughly half the length of the recently snapped streak.
Tech stocks have been one of the primary culprits of the recent pullback, as rising Treasury yields appear to have taken a bite out of growth stocks. The S&P 500 is market-cap weighted, meaning that even small moves in stocks like Apple and Amazon can drive movement of the headline index level.