Goldman Sachs told its clients on Monday that it is upgrading its outlook on the S&P 500 index, predicting it to hit 2,150 points by the end of this year, although it kept its medium-term projections on hold.
The investment bank's upgrade was from an earlier target of 1,900 points and would be a 4.2 percent climb for the remaining months of the year, with the index closing at 1,967.57 points on Friday.
"Stocks will climb further but the trajectory will be shallow," a team of analysts led by David Kostin said in a note released Monday morning.
Stocks have been on a major tear in recent years with central banks keeping interest rates low and providing extra liquidity since the global financial crash of 2008. The S&P 500 clocked gains of 30 percent last year but with this liquidity slowly being tightened by the Federal Reserve in 2014, that same index has only seen a move higher by 7 percent this year.