The S&P 500 advanced 15% in the first quarter of 2026, its best quarterly performance since the second quarter of 2020. When the index has gained at least 10% in a quarter since 2011, it has returned an average of 13% over the following 12 months, slightly above its 15-year annual average of 12%. The S&P 500 closed at 7,499 on June 30, and if history repeats, it would reach 8,474 by July 2027. Wall Street analysts are even more bullish, with a consensus target of 8,918 implying 19% upside, driven by expectations of 24% full-year earnings growth for S&P 500 companies after a 28% jump in the first quarter. Technology earnings surged 55% in the quarter, led by Nvidia and Micron Technology, and analysts see particular value in software stocks such as Palantir, Intuit, Autodesk, and Oracle, which rank among the most undervalued in the index based on median target prices.
Autodesk Inc
FactSet Research Systems Inc
Intuit Inc
Oracle Corporation
Netflix Inc
NVIDIA Corporation
Palantir Technologies Inc.
