Daily Management Review

Barclays raises S&P 500 end-2026 forecast to 7,650


03/26/2026


Analysts from Barclays Bank have updated their prediction for the S&P 500 index, increasing their estimate for the end of 2026 from 7,400 to 7,650.



Carlos Delgado; CC-BY-SA
Carlos Delgado; CC-BY-SA
The bank stated that a big increase in company profits, especially in tech businesses, along with strong economic growth, will be more important than growing risks like war in the Middle East and problems connected to artificial intelligence.

The S&P 500 ended trading on Tuesday at 6,556, which shows a nearly 17% rise in its updated outlook.

Since the start of the US-Israel war with Iran, the index has declined by about 4.3%, as rising oil prices and geopolitical uncertainty have impacted stock markets and led investors to move from stocks to safer assets.

Barclays thinks the US is still growing better than other big economies. They say the tech industry, which is a big part of that growth, doesn't seem to be slowing down much.

Analysts say their feeling about the US stock market is slowly turning more positive, but the path forward is expected to be difficult until the current crisis is resolved.

The average earnings per share for companies in the S&P 500 will be about $321 in 2026. Previously, they expected $305.

Barclays also showed a bleak outlook, predicting the index could drop to 5900 points. They warned that if oil prices stay very high, it might cause inflation, leaving the Federal Reserve in a tough spot.

source: ft.com