HSBC upgrades its S&P 500 outlook to 8,100, citing a 33% surge in projected 2026 earnings growth and resilient AI-related capital spending across the technology and industrial sectors.
HSBC raised its 2026 S&P 500 target to 8,100 from 7,650, citing strong corporate earnings growth and AI-related capital spending.
HSBC has raised its 2026 S&P 500 year-end target to 8,100, up from 7,650, fueled by strong corporate earnings and sustained AI capital expenditure. Strategist Nicole Inui projects 33% earnings growth for the year, dismissing investor concerns regarding Fed policy and geopolitical risks as overdone.
The revision is primarily driven by corporate earnings that have exceeded expectations, alongside strong capital spending related to artificial intelligence.
HSBC expects the Federal Reserve to keep interest rates unchanged through 2026, with 10-year Treasury yields forecasted at 4.65%.