A team of Goldman Sachs economists said in a report Thursday that there is a growing chance there could be an FDA-approved vaccine by the end of the year that would be widely available to Americans by mid-2021.While a vaccine could boost the United States economy, it could also spur investors to dump the current market leaders that have helped propel Wall Street higher -- most notably the FAANG+ Microsoft cabal of big tech stocks.
A vaccine approval could lead to"the kind of rotation that started and petered out in May and early June, supporting traditional cyclicals, steeper curves and banks, and challenging tech leadership," Goldman said in the report.But the . The most likely scenario, they say, is for the market to flatline, with the S&P 500 reaching a high of 3,390 by year's end -- only about 2% higher than current levels.
An early vaccine could cause the index to climb as high as 3,700 if there is an early vaccine, Goldman said -- or it could plunge to just below 2,200 if a second wave leads to"a more significant reversal" in economic activity. That's an extremely wide range. The Goldman analysts also pointed out in the report that the outcome of the US presidential election could also upend the markets, as investors try to figure out what the results will mean for taxes, government spending plans, US relations with China and the value of the dollar.
South Africa South Africa Latest News, South Africa South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Cruise industry's hopes for August relaunch taking on water
Read more »