UBS Raises S&P 500 Target, Bullish on AI and Earnings Growth Extending the Rally

Odaily News UBS has raised its S&P 500 index target, projecting a target of 8,100 points by December 2026 and further increasing to 8,400 points by June 2027, citing strong corporate earnings growth and sustained economic resilience.

UBS expects S&P 500 companies' earnings per share (EPS) to reach $350 in 2026 and $400 in 2027, driven primarily by performance in the technology, semiconductor, and energy sectors.

The bank continues to hold a positive outlook on U.S. economic resilience, the Federal Reserve's patient policy stance, and the accelerating adoption of artificial intelligence, believing there is still room for the current bull market to extend.

However, UBS also flagged potential risks, including rising oil prices, resurgent inflation, and AI investment returns falling short of expectations, which could weigh on market valuations and upward momentum.