Covid-19 vaccine outlook, according to Goldman Sachs Group Inc.The implied level of the S&P 500 could be above 3,600, strategists Dominic Wilson and Vickie Chang wrote in a note Thursday.
That’s if markets move toward Goldman’s “comparatively more optimistic" U.S. growth forecast, and real yields move higher but then further optimism pushes breakeven inflation rates higher without sending nominal yields up significantly, bringing the real yields down, they said.
The gauge closed at 3,373.43 on Thursday.“There is still room for market pricing of U.S. growth views to move higher, particularly given improving prospects for an early vaccine," the note said. “While a back-up in real yields would be a potential drag on equity returns, as long as.