Evercore ISI strategist Julian Emanuel says the S&P 500 could surge to 9,000 by 2026 in what he calls a potential “bubble scenario,” lifting his probability of that outcome to 30% from earlier estimates. The firm’s base case remains a more conservative 7,750 target.
Emanuel cited accelerating capital market activity, including a major leveraged buyout, as evidence of growing risk appetite reminiscent of past buyout booms that drove equity rallies — but also brought heightened short-term volatility.
He said Evercore continues to favour AI-linked sectors, which remain central to market momentum, while health care represents a tactical opportunity as policy risks and tariff concerns ease.
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Emanuel’s outlook underscores optimism around AI-driven momentum and capital-market activity, though his “bubble” warning signals rising valuation risks.
The call may reinforce bullish sentiment in growth and tech names while highlighting health care as a rotation trade.
