# Goldman Sachs Forecasts S&P 500 at 8,700 Over Next 12 Months

By Enna Lee

Canonical URL: https://www.tokenpost.com/news/investing/56573
Published: 2026-11-13T11:15:39.000Z
Updated: 2026-11-13T11:15:39.000Z
Section: Investing

> The firm favors U.S. and Japanese shares for 2027 and recommends an underweight position in European equities.

Goldman Sachs strategists project the S&P 500 will climb about 14% to 8,700 over the coming year, while their 2027 allocation favors U.S. and Japanese equities over European shares.

The outlook comes amid pressure on technology stocks. The Nasdaq 100 is about 9% below its early October peak, as concerns over AI infrastructure spending weigh on the sector. The S&P 500 has gained 11% so far this year.

Goldman Sachs sees large cloud providers as relatively resilient after their valuations fell below historical levels. Cash flow at leading companies has turned negative, but the firm says balance-sheet measures remain broadly healthy, including net debt compared with shareholder equity.

The firm expects earnings per share growth for S&P 500 companies to slow to 11% in 2027 from 36% in 2026. For companies in the Stoxx Europe 600, it projects growth will ease to 7% from 18%. Goldman Sachs says companies that maintain faster growth may earn higher valuations as overall earnings growth slows.

The Stoxx Europe 600 reached a record this week, supported by corporate results and money moving out of AI stocks. Goldman Sachs nevertheless recommends an underweight position in European equities, pointing to smaller valuation declines than in other markets, government debt concerns and a busy political calendar. The firm favors industries that tend to benefit from lower bond yields, easing inflation and falling oil prices.