Goldman Sachs strategist Ben Snider expects the S&P 500 to rise 13% to 8,700 over the next 12 months, betting that improved market breadth will support the index even as relief from surging gas prices and rising Treasury yields remains uncertain. Snider noted that while AI strength has kept the headline S&P 500 relatively resilient, the median stock in the index trades 16% below its 52-week high, dragging market breadth to its lowest level since the Dot-Com Bubble. The S&P 500 continues to trade near record highs despite elevated oil prices and surging bond yields, underpinned by robust corporate earnings growth, with analysts projecting aggregate third quarter S&P 500 earnings growth of nearly 29% year over year. The return of the Magnificent Seven trade amid AI optimism has lifted names like Meta and Nvidia, while McDonald's, PepsiCo, Lowe's, and Nike all hover around 52-week lows. Snider said these factors indicate the potential for both broad market upside and a catch-up from recent laggards if macro uncertainty declines.
Goldman Sachs Group Inc
Meta Platforms Inc.
NVIDIA Corporation
PepsiCo Inc
