UBS Global Wealth Management raises its S&P 500 target by around 6 per cent, citing stronger earnings, resilient economic growth, supportive monetary policy and continued AI adoption.
UBS Global Wealth Management has raised its year-end target for the S&P 500 to 8,100 points, becoming the latest major research firm to forecast that the benchmark US equity index will end 2026 above the 8,000 mark.
The new target represents an upside of around 6 per cent from the S&P 500’s Thursday close of 7,641.16 points. UBS maintained its “attractive” view on US equities, saying the fundamental pillars supporting the current bull market remain firmly in place.
The wealth management arm of UBS identified three key drivers for its positive outlook: resilient economic growth, supportive monetary policy and continued adoption of artificial intelligence.
While AI-related companies have remained important contributors to the S&P 500’s gains, UBS said the market’s recent performance has also been supported by improving conditions across more cyclical parts of the economy.
The stronger earnings outlook was a key factor behind UBS’s decision to raise its index target. The firm lifted its forecast for S&P 500 earnings per share to $350 for 2026, from an earlier estimate of $335.
For 2027, UBS raised its earnings-per-share forecast to $400 from $375, signalling expectations for continued growth in corporate profitability beyond this year.
More from BusinessThe revised forecasts suggest that UBS expects earnings growth to provide further support to US equities even as investors assess valuations and the sustainability of the AI-driven rally.
UBS is now part of a growing group of global research firms projecting that the S&P 500 could finish 2026 above 8,000 points. The benchmark has continued to benefit from optimism around corporate earnings and expectations that investment in AI will translate into stronger productivity and profits.
The bank also raised its 2027 mid-year S&P 500 target to 8,400 points from 8,200 previously.
The latest forecast comes as investors continue to weigh the strength of the US economy against monetary policy expectations and elevated valuations in parts of the technology sector. For UBS, however, the combination of economic resilience, policy support and sustained AI investment remains strong enough to justify a bullish stance on US equities.
