Goldman Sachs is out Wednesday morning with a big call for clients.
The firm has turned more bullish about the stock market on the back of the promising vaccine news and a divided U.S. government.
Goldman hiked its year-end S&P 500 target to 3,700 from 3,600, a 4% rise from Tuesday’s close of 3,545.53. Goldman also expects the broad equity benchmark to rally to 4,300 by the end of 2021, which represents a 21% gain from here. The bank sees the S&P 500 reaching 4,600 by the end of 2022.
“A vaccine is a more important development for the economy and markets than the prospective policies of a Biden presidency,” David Kostin, the bank’s chief U.S. equity strategy, said in the note. “The much-awaited results from Pfizer (PFE) that its COVID-19 vaccine has an efficacy rate greater than 90% is a positive event that will allow society to gradually normalize during 2021.”