News Summary

• David Kostin, Goldman’s chief U.S. equity strategist, even raised his price target for the S&P 500 from 4,700 to 5,100 Friday, citing “lower inflation,” “dovish Fed policy,” and a more “robust” economic outlook that will support stocks next year..
• His outlook has ranged from 35% odds of a U.S. recession to just 15%, making him one of the most bullish forecasters on the Street.A robust labor market, lower inflation, and sinking interest rates will help boost GDP growth and corporate earnings next year, in Goldman Sachs’ view..
• While most economists feared a recession was imminent at the beginning of the year, Goldman’s chief economist argued the Fed would be able to tame inflation without sparking a serious economic downturn..
• This will be “exceptionally friendly for risk asset markets,” Hatzius, who also heads Goldman’s global investment research division, wrote Monday.Many so-called risk assets have soared this year after a brutal 2022, with the S&P 500 rising over 23% and the tech-heavy Nasdaq jumping 43%..
• Inflation has been a thorn in the side of central banks worldwide for over two years, but Goldman Sachs’ chief economist Jan Hatzius believes the era of pain for consumers is coming to an end..
• Morgan Stanley, which has been one of the most bearish investment banks all year, raised its S&P 500 price target to 4,500 from 4,200 in November..