University of Kwazulu-Natal

The S P 500 Could Shoot 18 Higher In 2026 Top Stock Strategist Says

Bonisiwe Shabane
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the s p 500 could shoot 18 higher in 2026 top stock strategist says

JPMorgan’s chief equity strategist, Dubravko Lakos-Bujas, sees another strong year ahead for the US stocks despite bubble concerns and macroeconomic uncertainty. In his latest report, Lakos-Bukas told clients that the benchmark S&P 500 index could push higher and touch the 8,000 level by the end of 2026. This suggests potential for another 18% upside from here. The strategist’s positive call is meaningful given that the S&P 500 has rallied over 35% already since early April. What Lakos-Bukas’ forecast suggests is that 2026 could be the fourth consecutive year of double-digit gain for the benchmark index that tracks the performance of America’s top 500 publicly listed firms. Lakos-Bujas’s bullish view is rooted in one simple narrative: the market’s strength isn’t speculative, but grounded in strong fundamentals.

Wall Street’s forecasts for 2026 have started to hit the market, with some strategists projecting that the S&P 500 could rise to as high as 8,000 thanks to the artificial intelligence (AI) boom. The S&P 500 stood at 6,849.09 as of Nov. 28, 2025. If the index reaches the 8,000-mark by 2026, it would represent a 17% gain. Among the most optimistic is Deutsche Bank, which argues that the ongoing investment flows, strong buybacks and persistent earnings strength set the stage for “mid-teens returns” next year, as mentioned on a Yahoo Finance... The bank, which predicts an 8,000-mark for the S&P 500 in 2026, highlighted that the S&P 500 companies posted 13.4% earnings growth in the third quarter of 2025, according to FactSet, and expects valuations...

Their outlook stressed strong fundamentals across corporate America. Several other major banks cluster around a 7,500 target. HSBC expects the index to rise to 7,500 in 2026, while JPMorgan sees the index reaching the 7,500-level, with room to touch 8,000 if the Federal Reserve cuts rates more aggressively, the same Yahoo... JPMorgan strategist Dubravko Lakos-Bujas expects earnings to grow between 13% and 15% over the next two years, thanks to deregulation and the expanding productivity benefits of AI, as quoted on Yahoo Finance. Wall Street analysts says the S&P 500 could rise or fall as much 30% in 2026. The S&P 500 (^GSPC +0.26%) has added 17% this year despite crashing after President Trump announced sweeping tariffs in early April.

That puts the benchmark index on course for its third consecutive year of double-digit gains. Will the momentum carry into 2026? One Wall Street analyst says the S&P 500 could surge 30% next year under the right conditions, but another says the index could decline 30% if the economy suffers a deep recession. Read on to learn more. The stock market's performance is tied to financial results, and S&P 500 companies have now reported double-digit earnings growth in three straight quarters. That hasn't happened since 2021.

Better yet, Wall Street estimates earnings across the S&P 500 will increase 14% in 2026, an acceleration from 11% in 2025, according to LSEG. That bodes well for investors. Consider the situation like this: If S&P 500 earnings increase 14% next year and every included company maintains its current price-to-earnings (PE) multiple, then the entire index will also increase 14%. Of course, valuations are elevated by historical standards, so investors should not take that outcome for granted. Morgan Stanley chief investment officer Mike Wilson says that US stocks are likely to keep climbing this year as the 2026 outlook for earnings improves. In a new interview on CNBC’s Squawk Box, Wilson says that the S&P 500 may gain more than 860 points from its current level after Trump’s trade policies have become clearer.

“7,200 has been our bull case [for the S&P 500]. And what we said recently is that we’re leaning more towards that case, because that’s an earnings story. And that was our call six months ago. As we laid this out, we said, look, the first half is going to be tough. They’re going to kitchen sink it. We’re going to do all the negative growth stuff, and then they’re going to flip the switch.

They just did that faster and more violently than we expected. So now that second half story is playing out even quicker, but it gives us more confidence that the earnings story looks pretty good in 2026.” Wilson also says that the markets have largely assumed President Trump’s tariff-driven impacts, but stocks may have a cooling-off period this year before resuming their climb. “Does that mean that tariffs are not going to affect trade, they’re not going to affect GDP growth and things like that? Of course it is. But the market has already discounted all that in the first quarter for the most part.

Now we discounted a lot of recovery. The bigger risk now is that the stock market is once again trading ahead of the average person and they’ve figured this out. So could we have a pause in here of some kind in the third quarter? Sure.” We are bullish on stocks with a 7,000 target on the S&P 500 Index (SPX)(SP500) assuming an 18% effective corporate tax rate is enacted. Our target represents

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