UBS Global Wealth Management raises 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, signaling confidence in sustained profit growth and a robust earnings outlook. This adjustment places UBS among a growing number of firms forecasting the index to surpass 8,000 by the end of 2026.

The revised target suggests an approximate 6% potential upside from the index's closing value on Thursday. UBS reiterated its positive stance on U.S. equities, identifying resilient economic growth, accommodative monetary policy, and the widespread adoption of artificial intelligence as the primary drivers of the ongoing bull market.

While AI-focused companies continue to be significant contributors, UBS noted that improving conditions in more cyclical economic sectors have also bolstered recent performance. The wealth management division has consequently elevated its earnings per share projections for the S&P 500, estimating $350 for 2026 and $400 for 2027, up from previous estimates of $335 and $375, respectively. Additionally, UBS adjusted its mid-year index target for 2027 to 8,400, an increase from its prior forecast of 8,200.