The Financial Post reports in its Thursday edition that Goldman Sachs, alongside Morgan Stanley and Deutsche Bank, expects a 17-per-cent return for the S&P 500 this year. A Bloomberg dispatch to the Post reports that they attribute this to earnings growth from the artificial intelligence boom and have raised their year-end target for the index to 8,000 points. Goldman said continued earnings growth should drive equity market upside. The increased return forecast reflects increased estimates for S&P 500 earnings. The S&P 500 has risen nearly 10 per cent this year, driven by a tech rally, amid concerns over the Iran war. It reached a record high of 7,519 points on Tuesday. Goldman also increased its earnings-per-share forecast for companies in the S&P 500 to $340 (U.S.) for 2026, signalling year-over-year growth of 24 per cent. It projects a further increase of 13 per cent for 2027. Meanwhile, increases in valuations should be tempered by risks to the outlook, Goldman said. "The combination of decelerating earnings growth and continued uncertainty around both AI and the macroeconomic outlook should prevent a major increase in valuations. AI sentiment and interest rates create risks in both directions."