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 sees the S&P 500 index (SP500) reaching 6,500 by the end of next year, the same as Morgan Stanley's base case, driven by economic growth and strong corporate earnings. The target implies an upside of 10.3% from the benchmark index's last close.

After Morgan Stanley’s (MS) bullish outlook, another financial giant has joined the optimistic chorus for the S&P 500 in 2025. What’s more, it expects the growth of the S&P 500 to occur without relying on the outperformance of the Magnificent Seven,

Goldman Sachs has forecast the S&P 500 index would reach 6,500 by the end of 2025, joining peer Morgan Stanley, on the back of continued growth in the U.S. economy and corporate earnings.

Citing economic growth and corporate profitability as main drivers, Goldman Sachs ( GS, Financials) forecasts the S&P 500 will reach 6,500 by the end of 2025. Up from the bank's prior 12-month aim of 6,300, the revised target shows a 10.3% rise from the most recent level of the index.

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.

After Morgan Stanley, Goldman Sachs has reportedly forecast that the S&P 500 would hit 6,500 by the end of 2025, driven by corporate earnings and growth in the U.S. economy. Goldman Sachs also projected that the ‘Magnificent 7’ stocks — Amazon.