US stock indexes are unlikely to continue the downward movement to record lows thanks to the authorities’ approach – “we will do what is necessary”, said Goldman Sachs Group Inc.

“The combination of unprecedented fiscal and monetary policy support and the flattening of the coronavirus morbidity curve have dramatically reduced risks for both markets and the US economy”, said David Kostin and other Goldman Sachs strategists. If there is no second wave of coronavirus outbreak in the US once the blockade over the economy is lifted, financial markets are unlikely to see new low levels of assets, experts explain.

“The Fed and Congress have ruled out the prospect of a complete economic crash”, said the strategists. “These policy actions mean that our previous 2000 S&P 500 Index outlook is no longer possible”, they added.

Measures such as interest rate cuts, the Fed’s business financing mechanism, and 2 trillion USD fiscal stimulus are among the “numerous and ever-increasing” actions that raise the risk appetite for equity investors.

In the meantime, strategists expect investors to focus not on corporate performance for the quarter, but rather on the outlook for 2021, the note said.

“Despite the likely steady flow of weak earnings reports, the first-quarter reporting season will not be a major negative catalyst for stock market performance”, Goldman Sachs strategists wrote. “Our forecast for the S&P 500 level at the end of the year remains 3,000 points”, added they.