Wall Street banks hope so US stocks Register again Double profits in 2026challenging recent investor concerns about… Huge spending plans from big tech companies And the possibility of forming a bubble in the artificial intelligence sector.
he Standard & Poor’s 500 IndexFirst level reference, It will rise to more than 7,500 points by the end of 2026 – an increase of about 10% from its current level – according to the average forecast of nine large investment banks surveyed. Financial Times. The index closed on Thursday at 6,857 after reaching an all-time high of 6,920 in October..
Although these gains would represent The seventh year with double-digit increases in the last eightwill represent A Slow down This compares to the 16.6% increase accumulated so far in 2025 and the average of the past decade.
But expectations indicate that Wall Street believes markets have weathered last month’s correction – Sparked by concerns about high valuations for artificial intelligence – favored by President Donald Trump’s tax cuts and the prospect of lower interest rates.
“There will be some bumps in the road, but we believe the bull market is still intact“said Morgan Stanley analysts who expect the S&P 500 to reach… 7800 points By the end of next year.
They added that performance will be boosted by “loose fiscal, monetary and regulatory policies, coupled with artificial intelligence tailwinds.” Estimated at $129 billion In the corporate tax cuts included in the “big, beautiful” tax reform bill approved by Trump.
Stocks have recovered Following the sharp sell-off sparked by the so-called “Liberation Day tariff blitz” in April – when the index decreased to 15% Within a few days – a rebound driven by technology stocks that have led the market in recent years.
Nvidia, the world’s most valuable company, has more than doubled in value since its April low, and in October it became the world’s most valuable company. The first $5 billion company From the world.
Index also It was supported Recently due to renewed expectations for Interest rate cuts By the Federal Reserve, after a series of cautious comments from central bank officials.
Investors expect Between three and four-quarters points by the end of next yearaccording to implied levels in futures markets.
Deutsche Bank You expect that The S&P 500 index reaches 8,000 points by the end of 2026This implies a growth rate similar to that of 2025 – the most optimistic forecast among the major banks.
Pinky Chadha, chief US equity strategist at Deutsche Bank, said he expected that Strong corporate profits early next yearwhich should boost returns, and performance is expected to expand beyond technology after a more focused rally in 2025.The benefits appear to be expanding across sectors and regions“, he stated.
“Everyone is calling my forecast bullish – and I’m worried it’s not bullish enoughChadha added.
Analysts Bank of America They expect the Standard & Poor’s index to rise Only up to 7100 points For the end of next year – which is the most cautious forecast – as they expect market turmoil. Bank of America warned of the effects of spending on artificial intelligence and building data centers It is not yet reflected in better income.
“For now, investors are buying into that dreamsaid Savita Subramanian, Head of US Equities and Quantitative Strategy.
Stocks outside the US are also expected to rise in 2026, although less strongly than Wall Street markets. Index Stoxx Europe 600 index rises 6.4% From its current levels to about 615 points by the end of the year The Japanese Topix index is expected to grow by 5.6% to reach about 3,590 pointsaccording to the average of some collected forecasts.
We want to meet you!
Register for free At El Cronista for an experience tailored just for you.