Goldman’s Oppenheimer sees S&P 500 advancing to 8,700 in 2027 Sam Boughedda Fri, November 13, 2026 at 8:05 AM EST 2 min read ^GSPC -0.35% CL=F +0.03% US500 Investing.com -- Goldman Sachs expects global stocks to keep rising in 2027, though with high volatility, as slower earnings growth is offset by more attractive valuations and lower bond yields.
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The bank forecasts the S&P 500 reaching 8,700 over the next 12 months.
That target implies a 14% price gain from 7,619 (Wednesday's close), or a 16% total return including dividends. Goldman expects S&P 500 earnings to grow 11% in 2027.
Chief global equity strategist Peter Oppenheimer said 2026 has been a year of strong earnings, with broad-based gains across regions.
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However, he expects earnings growth to slow sharply across all major regions next year, while growth in AI capital spending is likely to peak and borrowing costs stay high.
"But equities have de-rated sharply; with more attractive valuations, positive but slower nominal economic and earnings growth, and lower bond yields, inflation and oil prices, we expect equities to continue to rise, but with high volatility," he wrote.
Goldman sees attractive opportunities in long-duration growth companies, which should become more valuable as growth slows, particularly U.S. hyperscalers. It balances this with selected defensive sectors and areas that benefit from lower bond yields and oil prices.
The bank is overweight the U.S. and Japan, neutral on Asia and emerging markets, and underweight Europe. It forecasts the STOXX 600 at 700, TOPIX at 4,500, and MSCI Emerging Markets at 1,850. While returns are forecast to be highest in Asia, Goldman said it focuses on risk-adjusted returns.
"Risks are becoming more two-sided," Oppenheimer said, adding that bonds, oil prices and shifts in AI spending could all increase volatility.
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