Barclays is now seeing the S&P 500 end the year at 6,450, which is a bump up from their previous forecast of 6,050. Their previous forecast was one of the more bearish ones but the latest change now puts them closer to the median among top market analysts of around 6,500.
So far, only Oppenheimer and Wells Fargo have calls for the S&P 500 to wrap up the year above the 7,000 mark. Then, we have BMO Capital at 6,700 and a host of names (Citi, Goldman Sachs, Fundstrat) at 6,600 with Deutsche at 6,550. That is followed by Morgan Stanley, HSBC, and Yardeni at 6,500. JP Morgan remains the most bearish with a call of 6,000 but just be wary that said estimate was given out back in June. And a whole lot has changed since then.
As for 2026, Barclays sees the index then hitting 7,000 as their year-end target and that is up from their previous forecast of 6,700. In terms of specific sectors, Barclays notes that it is turning positive on the entire US tech sector while upgrading the materials sector to a neutral rating. Meanwhile, they are downgrading the healthcare sector a neutral rating as well.
