Top brokerages anticipate the S&P 500 index (.SPX) will extend its rally into 2026, fuelled by investor enthusiasm for artificial intelligence and expectations of reduced borrowing costs. A recent Reuters poll indicates the benchmark index is projected to climb nearly 12% to 7,490 by the end of 2026. This would mark a fourth consecutive year of gains, provided 2025 also closes higher.
Strategists from major investment banks are optimistic that the momentum of AI and potential Federal Reserve rate cuts will sustain the bull market. They also cautioned about possible corrections due to inflation, high valuations, and tariff tensions. The brokerages expect global economic growth to remain resilient, estimating global GDP growth between 2.4% and 3.3%.
UBS Global Research and UBS Global Wealth Management, while part of UBS Group, operate as distinct and independent divisions. Similarly, Wells Fargo Investment Institute functions as a wholly-owned subsidiary of Wells Fargo Bank. These forecasts reflect the independent analyses of these prominent financial institutions.
