AI and Energy Stocks Propel European Equities as Goldman Raises STOXX 600 Target

The pan-European STOXX 600, which tracks major listed companies across Europe, is a key gauge of the region’s equity markets and economy. Goldman Sachs said a solid European economy, resilient corporate earnings, the AI investment boom and upgraded profit expectations for energy stocks were supporting the market. Inflation, high interest rates and energy costs could still weigh on valuations and earnings.

In an outlook released on June 2, 2026, Goldman raised its 12-month STOXX 600 target to 660 points, about 6.2% above the latest close of 621.24. It also lifted its three- and six-month targets to 640 and 645 points, respectively. The index gained 2.5% in May, while Goldman forecast constituent earnings per share would rise 10% in 2026 and another 5% in 2027.