UBS Sees S&P 500 at 7,300 by June and 7,700 by December 2026
UBS maintains an "Attractive" view on U.S. equities, forecasting the S&P 500 will hit 7,300 by June and 7,700 by December 2026. The bank projects 2026 S&P 500 earnings of $310 per share, an 11% gain, underpinned by profit growth, Fed rate cuts, and AI adoption.
1. Market Outlook and S&P 500 Targets
UBS’s CIO and Head of U.S. Equities argues the bull market remains intact and expects the S&P 500 to reach 7,300 by June 2026 before climbing to 7,700 by December on sustained demand for equities.
2. Earnings Forecast and Growth Drivers
The firm forecasts S&P 500 earnings of $310 in 2026, representing 11% growth, supported by healthy corporate profit margins, an anticipated Fed rate cut later this year, and value creation from widespread AI adoption.
3. Geopolitical and Market Risks
UBS assumes only a brief U.S.–Iran energy supply disruption, expecting oil prices to ease; however, a prolonged cut in Persian Gulf flows could trigger equity market downside despite historical post-event rebounds.