Bank of America raises S&P 500 year-end target to 7,400 points but warns of interest rate risks

Bank of America equity strategist Savita Subramanian has raised her target for the S&P 500 index. As one of Wall Street’s most bearish strategists, her previous target was the lowest among market analysts, but she still warns that the index remains vulnerable to interest rate risk. Subramanian increased her year-end forecast for the S&P 500 from 7,100 to 7,400. The new target level implies a 3.4% decline from the index’s closing level last Friday. According to aggregated data from more than 20 strategists’ forecasts for the S&P 500 by the end of 2026, her prediction remains one of the most pessimistic on Wall Street. She expects the S&P 500 to rise to 7,800 over the next 12 months, which is only about 2% above the recent closing level. On Monday, Subramanian said, “We are entering a seasonally weak period, and in our view, a market pullback has been postponed for too long.”