Analysts at Goldman Sachs (NYSE:GS) have improved the outlook for the Standard & Poor’s 500 stock index in three months to 4,000 points from the previously expected 3,600 points.

Nevertheless, the bank’s experts left the S&P 500 unchanged and the indicator’s estimate for the end of the current year at 4,000 points. It is approximately in the middle of the forecasted range of Wall Street analysts from 3400 points to 4500 points, notes MarketWatch.

S&P 500 prediction

Since the beginning of this year, the S&P 500 rose by 7.2% and at the close of trading on Friday stood at 4136.48 points.

Goldman Sachs Chief Equity Analyst David Kostin believes that solid U.S. macroeconomic data outweighed an unimpressive Q4 reporting season. Adding to the positive economic picture in the U.S. was an earlier-than-forecast Chinese opening and a reduced likelihood of a recession in Europe. This improves the S&P 500 forecast for the near term.

However, because the “soft landing” of the U.S. economy is already incorporated in stock prices, the expert left the target level of the S&P 500 at the end of this year.

Goldman Sachs forecasts zero change in the average earnings per share of American companies by the end of 2023 and growth of 5% next year.

They also expect a gradual increase in ten-year government bond yields to 4.2% annually from the current 3.63%.

Earlier we reported that the S&P 500 and Nasdaq U.S. stock indices were up 1.5-3.3%, while the Dow Jones was down slightly.