S&P 500 Could Hit 7,600 By 2026, Wells Fargo Says In Aggressive Upgrade

Sep 17 - Wells Fargo WFC pushed its S&P 500 price targets higher this week, lifting the year-end range to 6,6006,800 from 6,3006,500 and moving its 2026 forecast to 7,4007,600 from 6,9007,100.

The bank ties the upgrade partly to continued AI-driven capital spending and expects a shallower path for rates if the Federal Reserve starts cutting, markets price a possible 25-basis-point move next week.

Other firms have nudged estimates higher too: Barclays BCS raised its outlook to 6,450, while Deutsche Bank DB set a loftier 7,000 target. Those calls reflect a wider Wall Street view that AI investment can support earnings even as investors debate valuation risks.

Wells Fargo's chief equity strategist, Ohsung Kwon, warned of froth in some pockets but added that if AI capex holds, the broader rally can keep going. The bank also cites potential policy tailwinds such as deregulation and proposed tax changes.