Goldman Sachs says that they see the ‘Magnificent 7’ carrying the benchmark index mostly, with the bunch set to outperform as compared to the other index constituents. That being said, they do expect the ‘Magnificent 7’ to only outperform by about 7% – the slimmest margin in seven years.

Adding to upside risks, the firm sees a “friendlier mix” of fiscal policy and a more dovish Fed as helping. However, they do warn that risks remain high for broader US equities going into 2025. And that is due to the threat from Trump’s tariffs and also higher bond yields.