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Goldman Sachs said in a note Thursday the S&P 500 can hit 3,600 if markets price in the bank’s “comparatively more optimistic US GDP forecast.”
The bank’s strategists Dominic Wilson and Vickie Chang say if the economy contracts by only by 5% in 2020, and grows by 6.2% next year, then real yields will rise sharply to levels of “cyclical optimism” in June. 
The US bank said in a note last week banks are underpricing a scenario that a vaccine will be developed by year-end and widely distributed by the first quarter of 2021. 
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The S&P 500 could hit 3,600 if markets price in a “comparatively more optimistic US GDP forecast,” Goldman Sachs said this week. That is almost 7% above where the index is currently trading.

In a note published Thursday, strategists Dominic Wilson and Vickie Chang said if the consensus forecast moves to its “comparatively more optimistic” forecast of a 5% contraction in 2020 and 6.2% growth next year, then real yields will rise sharply back to levels that prevailed at the peak of cyclical optimism back in June. See the rest of the story at Business Insider

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