Dec 24 (Reuters) – Top brokerages expect the benchmark S&P 500 index to extend its rally in 2026, as investors pile into artificial intelligence plays and bet on reduced borrowing costs to sustain the momentum.
The benchmark index will rise nearly 12% to 7,490 by end-2026, marking a fourth straight year of advances if 2025 closes higher, according to a Reuters poll.
Strategists from major investment banks expect AI momentum and Federal Reserve rate cuts to keep the bull market alive, even as they warn inflation, stretched valuations and tariff tensions could trigger corrections.
They expect global economic growth to be resilient. Global GDP should rise between 2.4% and 3.3%, as per estimates.
Following are forecasts from some top brokerages on economic growth and the performance of U.S. stocks in 2026:
Forecasts for stocks:
Brokerage 2026 S&P 500 index target
BofA Global Research 7,100
Societe Generale 7,300
Barclays 7,400
UBS Global Research 7,500
Jefferies 7,500
HSBC 7,500
J.P.Morgan 7,500
Canaccord Genuity 7,500
BNP Paribas 7,500
Goldman Sachs 7,600
Citigroup 7,700
UBS Global Wealth 7,700
Management
Evercore ISI 7,750
Morgan Stanley 7,800
Seaport Research Partners 7,800
Deutsche Bank 8,000
Oppenheimer Asset 8,100
Management
Wells Fargo Investment 7,400-7,600
Institute
Real GDP Growth:
Brokerage GLOBAL U.S. EURO AREA UK
Citigroup 2.6% 1.9% 0.8% 1.0%
Goldman Sachs 2.8% 2.1% 1.3% 0.9%
Morgan Stanley 3.2% 1.8% 1.1% 1.2%
TD Securities 2.8% 2.0% 0.8% 1.0%
Wells Fargo 2.8% 2.3% 1.2% 1.2%
UBS Global Wealth 3.1% 1.7% 1.1% 1.1%
Management
Deutsche Bank 3.1% 2.4% 1.1% 1.2%
HSBC 2.4% 1.7% 1.0% 1.2%
J.P.Morgan 2.5% 2.0% 1.3% 0.9%
BofA Global 3.3% 2.4% 1.0% 1.1%
Research
UBS Global 3.1% 1.7% 1.1% 1.1%
Research
* UBS Global Research and UBS Global Wealth Management are distinct, independent divisions in UBS Group
* Wells Fargo Investment Institute is a wholly owned subsidiary of Wells Fargo Bank
(Compiled by the Broker Research team in Bengaluru; Editing by Sriraj Kalluvila and Tasim Zahid)
