Goldman Sachs is calling it: with Trump back in the Oval Office, the S&P 500 might just see a major boost in earnings. They’re predicting over 20% earnings growth over the next two years, thanks to Trump’s proposed tax cuts. Goldman even dubbed these cuts an “upside risk”—as if seeing growth and success in the American economy could ever be a risk! But here we are, watching Wall Street celebrate the return of a pro-business president.
Goldman’s crystal ball shows S&P 500 earnings per share on a steady incline: $241 in 2024, a solid 11% bump in 2025, and another 7% in 2026, bringing EPS to $288. But they’re quick to add that these targets could be blown out of the water if Trump slashes the corporate tax rate as he’s promised. Trump’s talking about lowering that tax from 21% to a mere 15%, which, according to Goldman, would translate to an EPS boost of nearly 1% for every percentage-point cut. Do the math, and it’s clear that these tax cuts could be the engine that powers the American economy right back to the top.
And the market’s loving it. Right after Trump’s victory, the stock market saw a massive surge. Bank of America noted a staggering $20 billion funneled into U.S. stocks on a single day, with financial sector funds alone seeing a record-breaking $2.9 billion. Trump’s market impact is undeniable, proving once again that when you’ve got a business-savvy president, Wall Street takes notice.
Of course, not everyone’s thrilled. Leave it to Democrats to wring their hands over Trump’s tariff plans, with Goldman pointing out that tariffs could curb some of the growth if Trump raises them by 10%-20%. Goldman estimated a 5% tariff hike might shave 2% off EPS growth. But during his last term, companies figured out how to pass those tariff costs on without taking a hit, and Trump’s team knows this. So, as long as he’s got the reins, we can expect him to keep the tariffs working for American jobs without slowing down growth.
Critics love to complain, but they ignore the big picture: Trump’s bold economic strategy—a winning combo of tax cuts and pro-business policies—is just what America needs to keep soaring. Sure, Democrats will keep insisting that it’s “inflationary” or that it “raises interest rates,” but the numbers don’t lie. Trump’s economic plan delivers real growth and opportunity, and it’s time for the naysayers to accept that.
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