UBS Global Wealth Management lifts S&P 500 year-end target to 8,100

UBS Global Wealth Management has increased its year-end target for the S&P 500 index to 8,100 points, citing a more optimistic earnings outlook and confidence in sustained profit growth throughout the upcoming year. This new target suggests a potential 6% increase from Thursday's closing price of 7,641.16 points.

The UBS subsidiary, which is part of the larger UBS Bank, joins a growing number of global research firms predicting that the S&P 500 will surpass the 8,000 mark by the end of 2026. UBS maintains a positive stance on US equities, attributing the bull market's strength to three key factors: resilient economic growth, supportive monetary policy, and the widespread adoption of artificial intelligence.

While AI-related companies continue to drive much of the market's performance, recent gains have also been bolstered by improving conditions in more cyclical sectors of the economy, according to a statement released by UBS on Thursday. The wealth management unit has raised its earnings per share forecasts for the S&P 500 to $350 for 2026 and $400 for 2027, up from its earlier estimates of $335 and $375, respectively.

Additionally, UBS has revised its mid-year index target for the S&P 500 to $8,400, up from the previously projected $8,200.