Goldman expects U.S. equity market to continue making new highs

Goldman Sachs said it expects the U.S. equity market to keep making new highs, setting a year-end S&P 500 target of 7,600 (about 7% upside). The forecast assumes 12% EPS growth in 2026 and 10% in 2027 while keeping the index P/E around 21x. Goldman highlights a 12% rally since March 30, a rebound in investor sentiment, and sees AI investment as a major earnings driver (roughly 40% of S&P EPS growth this year). The bank favors secular growth names tied to power infrastructure but warns narrow market breadth is a key risk.