Overview
- The S&P 500 and Dow notched record highs in the same week the Federal Reserve cut interest rates, with Jerome Powell’s tone viewed by some as less hawkish.
- Targets cluster between roughly 7,500 and 8,100, including Oppenheimer at 8,100, Deutsche Bank at 8,000, UBS at 7,700, Morgan Stanley and Wells Fargo at 7,800, and HSBC and J.P. Morgan at 7,500.
- J.P. Morgan says 8,000 is possible if rates decline further, underscoring how forecasts hinge on the policy path.
- Goldman Sachs projects S&P 500 earnings growth above 12% in 2026 and expects gains to broaden beyond the seven largest stocks as tariff headwinds fade.
- The index sits near 6,850 after a tech- and AI-led 2025 rally of about 16%, though strategists caution outcomes could shift with inflation, trade policy and geopolitical risks.