Goldman Sachs says U.S. reached market bottom, year-end S&P 500 to 3,000

Did the U.S. stock market bottom on March 23? It’s quite likely, says Goldman Sachs in a new report.

The Wall Street juggernaut presented the case that American equities are unlikely to test new lows because of Washington’s “do whatever it takes” initiative on the fiscal and monetary fronts.

GS argues that unprecedented policy support and efforts to flatten the curve have slashed risks. Plus, if the U.S. does not endure a second wave when the economy reopens, the stock market will likely avoid fresh lows.

“The Fed and Congress have precluded the prospect of a complete economic collapse. These policy actions mean our previous near-term downside of 2,000 is no longer likely [for the S&P 500 Index],” Goldman strategists wrote.

But what about dreadful earnings season? Forget about it. They say the S&P 500 target is still 3,000 by the end of the year.

At the time of this writing, the Dow Jones is down 330 points to 22,3390 and the S&P 500 has shed 1.21 percent to 2,756.02.

Of course, you can prop up the market if this is your policy: