Barclays raises S&P 500 index target, expecting improved earnings outlook

Due to ongoing peace negotiations, concerns about artificial intelligence spending, financing, and monetization, as well as persistently high interest rates and strong consumer demand, the stock market remains volatile. However, the Barclays team led by Venu Krishna is focusing on improving profit outlooks, which is the reason for raising their target for the US stock market. The strategists have also increased their 2026 S&P 500 earnings per share target from $321 to $337. The 2026 S&P 500 target implies a 4.4% upside from the latest closing price. The team has also set a 2027 target of 8,800 points, with an earnings per share target of $389. (Bloomberg)