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What geopolitical tensions with Iran?

That's the takeaway from a new call from Goldman Sachs on the markets this year. It appears the investment bank thinks the stock market rally from the war lows is only just beginning.

What Goldman Sachs is projecting: Goldman strategist Ben Snider believes the S&P 500 (^GSPC) will rise 7% from current levels to end the year at 7,600. "The US equity market should continue to make new highs in coming months on the back of continued earnings growth," Snider said.

The market stats behind the latest rally: Markets have shrugged off fears of slowing US growth amid $4-a-gallon gasoline and higher oil prices, hitting new highs a week ago. The S&P 500 has rallied by 12% since March 30, its sharpest rise since April 2020 and, before that, March 2009. Snider pointed out that "the experiences of 2009, 2020, and 2025 are reminders that forward-looking equities often rebound before the 'all clear' on hints of improvement in the outlook." Good reminder.

How Goldman thinks investors should be positioned: Snider said investors might venture back into growth stocks that are now trading at cheaper valuations than before the war. "Within the equity market we think investors should tilt portfolios toward secular growth companies with idiosyncratic earnings tailwinds and limited AI disruption risk โ€” such as firms tied to investment in power infrastructure โ€” rather than stocks levered to broad economic growth," Snider said. Several stocks Goldman recommends on this call are Broadcom (AVGO), Nvidia (NVDA), AMD (AMD), Amazon (AMZN), Meta (META), and Micron (MU).

Read more: How to protect your money during turmoil, stock market volatility

What Yahoo Finance is hearing on the markets right now: It's a buy-on-any-weakness kind of market as peak panic regarding the war's effect is in the rearview mirror, experts say. "The only thing the market cares about with this conflict is that we do not see a situation where oil could spike above $150 a barrel all the way to $200 a barrel, and really cause a problem," Sevens Report Research founder Tom Essaye said on Yahoo Finance's Opening Bid.

Bottom line: Nothing goes up in a straight line, especially the stock market. Key to reinforcing Goldman's bullish call will be very strong earnings and outlooks from "Magnificent Seven" players over the next two weeks and a lot of important names in the industrial complex. Without these reports, the market's legion of bulls could face a reality check.

Brian Sozzi is Yahoo Finance's Executive Editor and a member of Yahoo Finance's editorial leadership team. Follow Sozzi on X @BrianSozzi, Instagram, and LinkedIn. Tips on stories? Email brian.sozzi@yahoofinance.com.

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