Barclays lifts S&P 500 index's year-end target to 7,950 on strong earnings
SPY•Barclays raises S&P 500 year-end target
Barclays raised its year-end target for the benchmark S&P 500 index .SPX to 7,950 from 7,800 on Wednesday, following a standout earnings season led by technology companies.
The revised target is about 3.6% higher than the index's last close. The brokerage sees the benchmark reaching 8,800 points by the end of 2027.
Utilities downgraded on regulatory concerns
It downgraded the utilities sector to "neutral" from "positive," citing regulatory uncertainties, including challenges around wildfire liability reform and growing opposition to data center permitting in some U.S. states.
On Tuesday, HSBC also raised its year-end target, betting that strong corporate earnings and sustained spending on AI infrastructure will extend the benchmark index's rally.
Expectations for the index remain bullish, with UBS Global Research, Goldman Sachs and Citigroup projecting the S&P 500 will end the year at or above 8,000.
Earnings strength and AI spending support outlook
U.S. corporate earnings have outperformed Wall Street expectations in the second quarter; 86% of the S&P 500 companies that have reported results exceeded analysts' estimates, higher than the long-term average of , according to data compiled by LSEG.
