The S&P 500 could reach 7,500 in 2026, UBS says

Even though concerns around sky-high valuations in the artificial intelligence trade put the market under significant pressure in the last week , the tech-fueled bull market should still reach new heights next year, according to UBS. "Base case, we see the S & P 500 rising to 7,500 in '26 driven by ~14% earnings growth, nearly half of that from Tech," Arend Kapteyn, the firm's global head of economics and strategy research, wrote in a note. That forecast, which implies nearly 12% upside from Friday's closing price, comes as the S & P 500 has already surged more than 15% this year. .SPX YTD mountain S & P 500, year-to-date To be sure, the economist added that the market could see a "small negative" impact from continuing concerns around valuations. Key AI stocks were propelling the market h