HSBC raised its year-end 2026 target for the S&P 500 to 8,100 from 7,650, citing corporate earnings that have exceeded its previous expectations. Strategist Nicole Inui said the revision was driven mainly by earnings, with first-half 2026 earnings-per-share growth close to 40% and expected growth of more than 25% in the second half. The bank forecasts full-year 2026 earnings growth of 33%, equivalent to earnings per share of $360, and applies a price-to-earnings multiple of 22.5 times, which it said is broadly consistent with historical levels. Inui cited artificial intelligence capital spending as a factor supporting semiconductor and other AI-linked equities, and said HSBC remains positive on technology, financials and industrials while taking a selective approach to consumer-related sectors. HSBC expects the Federal Reserve to leave interest rates unchanged through this year and next, and forecasts the 10-year U.S. Treasury yield at 4.65% by the end of 2026.
HSBC Holdings PLCHSBC raised its 2026 S&P 500 target to 8,100, citing stronger-than-expected corporate earnings and AI capex support.
