The S&P 500, one of three main indices on the New York Stock Exchange (NYSE), is expected to make gains of about 14% this year, to close 2021 at the level of 4,300 points, as shown by a recent projection by Goldman Sachs picked up by Dow Jones’s MarketWatch.
As for 2022, the index is forecasted to rise by 7% and reach the level of 4,600 points by the end of next year.
This comes amid an expected high growth rate for the United States economy, which is expected to see the real gross domestic product (GDP) registering a growth rate of 6.2%.
As the economy recovers from the impact of the Coronavirus pandemic, Goldman Sachs expects earnings per share (EPS) to rise by 31% in 2021, after declining by 17% last year.
It is worth noting that the benchmark index closed 2020 at 3,756 points, gaining about 18% for the year.
Tech stocks were to thank for a large portion of the index’s gains of last year. However, top tech stocks are facing some risks this year, especially after a recent lawsuit by the U.S. Department of Justice against Google and another by the Federal Trade Commission (FTC) against Facebook, which Goldman Sachs warned that the market has not reacted to in properly.