Goldman Sachs sees the S&P 500 gaining 11% over the next year as stock market gains continue to broaden out from a few large tech names.

The S&P 500 could hit 6500 by the end of next year, according to Goldman Sachs and Morgan Stanley, boosted by the U.S. economy's growth and higher corporate earnings.

Goldman Sachs on Tuesday cut it's forecast for Europe's benchmark equity index STOXX 600 for the next 12 months citing continued weak economic performance and modest earnings per share growth as the key reasons.