Barclays Sets Bullish Year-End S&P 500 Target with Economic Optimism
Barclays raised its S&P 500 year-end target to 6,050, predicting earnings normalization in 2026. This follows similar upward revisions by major financial institutions. Improved market conditions and eased trade tensions contributed to the index's recent strong performance. Barclays introduced a 2026 EPS forecast of $285, with a year-end target of 6,700.
Barclays has revised its year-end price target for the S&P 500 index, elevating the forecast to 6,050 from the previous 5,900. The change comes amid easing trade uncertainties and the expectation of normalized earnings growth by 2026, providing a favorable outlook for investors.
This adjustment aligns with forecasts from Goldman Sachs and UBS Global Wealth Management, made earlier in May, as well as recent projections by RBC Capital Markets and Deutsche Bank. The revised target suggests an approximate 1.32% increase from the index's recent closing at 5,970.37 points.
The S&P 500 experienced significant growth, achieving a 6.2% rise in May, marking its best performance since November 2023. This surge was driven by positive corporate earnings and a softer stance on tariffs by U.S. President Donald Trump, along with cooling inflation data. Despite tariff concerns, Barclays maintains its 2025 earnings per share forecast at $262, with projected earnings and market targets for 2026 looking optimistic.
(With inputs from agencies.)
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