Goldman Sachs has raised its year-end target for the S&P 500 in 2025 from 6600 to 6800. This change reflects their updated outlook on the market. The new target of 6800 indicates a positive growth expectation. Currently, there are no additional details or updates available.

Revised S&P 500 Target

The year-end target for the S&P 500 is now 6800. As of September 22, 2025, the index is trading around 6720, showing that the strong market momentum from this summer is still in effect. This update supports the idea that the overall market trend remains positive for now. With the VIX at multi-year lows near 13, implied volatility is low, making it appealing to sell options. One strategy to consider is selling out-of-the-money put spreads on the SPX index with October expirations to earn income from the market’s steady rise. This strategy benefits from both the upward trend and the calm market conditions. Recent economic data strengthens this optimistic outlook. The August CPI report, released last week, shows inflation cooling to a 2.8% annual rate. This suggests that the Federal Reserve is likely to pause rate hikes for the rest of the year, making it easier to hold riskier assets in the near future.

Protecting Against Volatility

Since much of the gain may have already been achieved, utilizing defined-risk call spreads is a smarter way to prepare for further growth. We are considering positions like the December 6750/6850 call spread. This allows us to benefit from movement toward the new target while keeping initial costs low. Historically, the fourth quarter is strong for stocks, and we experienced a significant year-end rally in 2023 under similar easing inflation conditions. However, the very low VIX indicates a potentially high level of market complacency. While we anticipate the trend to continue, we need to prepare for possible increases in volatility. To guard against an abrupt shift in market sentiment, we should invest a small portion of our capital in affordable hedges. Buying VIX calls for November expiration or far out-of-the-money SPY puts can provide low-cost protection for our portfolio. This allows us to remain optimistic while being safeguarded against an unexpected market downturn. Create your live VT Markets account and start trading now.

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