Barclays raises S&P 500 year-end target on tech strength

Barclays has raised its year-end S&P 500 target to 7,950 from 7,800, citing strong momentum from Big Tech and durable demand for artificial intelligence. Venu Krishna, head of US equity strategy at Barclays, also increased the firm’s 2026 earnings estimate to $365 per share. Other major financial institutions have similarly raised their forecasts, with JPMorgan targeting 8,000 and HSBC lifting its target to 8,100.

Market analysts suggest that upcoming Q3 earnings could serve as a catalyst for further growth. While volatility from geopolitics and inflation remains a factor, historical seasonal trends and strong sector performance provide a positive outlook. The technology sector continues to drive the index, with hyperscaler capital spending projected to exceed $1.1 trillion by 2027. Additionally, the energy sector is expected to remain strong, supported by high oil prices and robust earnings growth.