Goldman Sachs Calls It: A Year-End Stock Rally is Here to Stay
Goldman Sachs Sees Unprecedented Year-End Surge Amid Strong Investor Optimism and Corporate Buybacks

The stock market is on a strong upward trajectory as 2024 draws to a close, with Wednesday’s historic rally sparking what Goldman Sachs analysts believe could be a significant year-end surge. Following a post-election lift in investor sentiment, major indices reached record highs. According to Scott Rubner, a tactical specialist at Goldman Sachs, this rally could extend further than many anticipate, fueled by corporate buybacks, synthetic demand, and favorable economic sentiment.
Wednesday’s Record-Breaking Rally
On Wednesday, the Dow Jones Industrial Average soared by 1,508 points, marking a 3.6% increase. This was its best daily performance since November 2022. The S&P 500 climbed 2.5%, and the Nasdaq Composite rose nearly 3%, both seeing their largest single-day gains since earlier landmark events. Investors reacted positively to the presidential election results, expecting a more business-friendly regulatory environment under the incoming administration. Historically, such optimism in post-election years fuels robust stock performance, setting the stage for a potential year-end rally.
Goldman Sachs’ Bullish Forecast
Goldman Sachs expert Scott Rubner believes that this rally, driven by what he dubs “#rotation nation,” could exceed expectations as investors rotate into various high-performing sectors. Rubner notes that many investors hedged their portfolios in anticipation of election-related volatility. Now, with the election results cemented, these hedges are being unwound, creating a wave of synthetic demand that could further fuel stock prices.
Corporate Buybacks Bolstering the Market
November is traditionally a strong month for corporate buybacks, which add upward momentum to stock prices by reducing the supply of available shares. Goldman Sachs reports that buybacks in 2024 have already surpassed last year’s figures by 15%, totaling over $1.05 trillion. This record level of buybacks reflects corporate confidence in the market, providing a solid foundation for a year-end rally.
Investor Sentiment and Sector Opportunities
The rally’s success is also fueled by bullish investor sentiment and opportunities across various sectors, particularly in technology and finance. As investor confidence grows, the market gains a self-reinforcing momentum. The rotation of funds into diverse sectors suggests that even traditionally lagging areas might benefit from this rally.
Conclusion
As 2024 heads toward its final stretch, the stock market is experiencing a robust year-end rally. Thanks to synthetic demand from hedge reversals, increased corporate buybacks, and investor optimism, this rally may surpass expectations. For investors, this period presents both opportunities and potential risks, especially as they consider rotating into high-performing sectors. Goldman Sachs’ outlook highlights the importance of staying informed and nimble, as market conditions continue to evolve.
