Overview
- The S&P 500 and Dow notched record highs in the same week the Federal Reserve cut rates, and Chair Jerome Powell’s remarks were viewed as less hawkish by some investors.
- Deutsche Bank projects 8,000 for year-end 2026, Morgan Stanley and Wells Fargo target 7,800, and HSBC and J.P. Morgan see 7,500 with JPMorgan noting upside to 8,000 if rates fall further.
- Oppenheimer set the most bullish target at 8,100, UBS forecast 7,700, and strategist Ed Yardeni also points to 7,700 after raising the probability of his “Roaring 2020s” scenario.
- Banks cite earnings acceleration, resilient growth, and heavy AI investment as key supports, while Goldman Sachs forecasts more than 12% S&P 500 earnings growth in 2026 and a broadening beyond the top seven stocks.
- The index has risen about 16% this year to roughly 6,850 on tech-led gains, yet analysts caution that valuations and variables such as rates, inflation, tariffs, global trade, and the Russia–Ukraine conflict could sway outcomes.