Goldman Sachs: S&P 500 Could Rise Another 7%

On Thursday, Goldman Sachs said the S&P 500 can hit 3,600 if markets price in the bank's "comparatively more optimistic US GDP forecast." The banks analysts say specific market conditions would yield the growth.

The economy contracts by only by 5% in 2020.

It would have to grow by 6.2% next year.

After that real yields will rise sharply to levels of "cyclical optimism" in June 2021.

Goldman said banks are underpricing a scenario that a vaccine will be developed by year-end and widely distributed by the first quarter of 2021.