Analysts Up S&P 500 Targets Amid AI Optimism and Economic Resilience

Barclays and Deutsche Bank have revised their year-end forecasts for the S&P 500 index, crediting strong corporate earnings and increased optimism around artificial intelligence for their optimistic outlook. Deutsche Bank adjusted its target to 7,000 from 6,550, while Barclays raised its projection to 6,450 from 6,050.

The S&P 500 achieved a record high earlier this week, climbing 11.2% this year. Even with uncertainties from President Donald Trump's tariff policies, major banks are confident about the U.S. stock market's performance, highlighted by its over 30% rally since April.

Expectations for Federal Reserve rate cuts have increased amid signs of a cooling labor market, with Barclays predicting three reductions before the year ends to offset labor market weakness. Investors now await the Fed's upcoming meeting for clarity on potential rate adjustments and market directions.

(With inputs from agencies.)