Barclays Upgrades S&P 500 Outlook Amid AI Optimism
Barclays has increased its S&P 500 target for year-end 2025 to 6,450 due to strong corporate earnings, robust U.S. GDP, and AI growth optimism. The brokerage also raised its 2025 EPS estimate, foreseeing minimal tariff impact and support from upcoming U.S. rate cuts.
Barclays has revised its year-end 2025 forecast for the S&P 500 index, setting a new target of 6,450, up from its previous estimate of 6,050. This change reflects stronger-than-expected corporate earnings, a resilient U.S. GDP, and growing optimism around AI-driven growth, according to the financial institution.
The brokerage has also adjusted its 2025 earnings per share (EPS) estimate for the index to $268 from the initial $262. Barclays noted that the anticipated impact from tariffs has been less significant than expected, a factor that, alongside upcoming U.S. interest rate cuts, should bolster equity valuations.
Overall, the positive outlook reflects a combination of economic resilience and technological advancement, as analysts predict that AI developments will play a crucial role in advancing market performance over the coming years.
(With inputs from agencies.)
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