Dec 24 (Reuters) – Top brokerages expect the benchmark S&P 500 index to extend its rally in 2026, as investors pile into artificial intelligence plays and bet on reduced borrowing costs to sustain the momentum. The benchmark index will rise nearly 12% to 7,490 by end-2026, marking a fourth straight year of advances if 2025 closes higher, according to a Reuters poll. Strategists from major investment banks expect AI momentum and Federal Reserve rate cuts to keep the bull market alive, even as they warn inflation, stretched valuations and tariff tensions could trigger corrections. They expect global economic growth to be resilient. Global GDP should rise between 2.4% and 3.3%, as per estimates. Following are forecasts from some top brokerages on economic growth and the performance of U.S. stocks in 2026: Forecasts for stocks: Brokerage 2026 S&P 500 index target BofA Global Research 7,100 Societe Generale 7,300 Barclays 7,400 UBS Global Research 7,500 Jefferies 7,500 HSBC 7,500 J.P.Morgan 7,500 Canaccord Genuity 7,500 BNP Paribas 7,500 Goldman Sachs 7,600 Citigroup 7,700 UBS Global Wealth 7,700 Management Evercore ISI 7,750 Morgan Stanley 7,800 Seaport Research Partners 7,800 Deutsche Bank 8,000 Oppenheimer Asset 8,100 Management Wells Fargo Investment 7,400-7,600 Institute Real GDP Growth: Brokerage GLOBAL U.S. EURO AREA UK Citigroup 2.6% 1.9% 0.8% 1.0% Goldman Sachs 2.8% 2.1% 1.3% 0.9% Morgan Stanley 3.2% 1.8% 1.1% 1.2% TD Securities 2.8% 2.0% 0.8% 1.0% Wells Fargo 2.8% 2.3% 1.2% 1.2% UBS Global Wealth 3.1% 1.7% 1.1% 1.1% Management Deutsche Bank 3.1% 2.4% 1.1% 1.2% HSBC 2.4% 1.7% 1.0% 1.2% J.P.Morgan 2.5% 2.0% 1.3% 0.9% BofA Global 3.3% 2.4% 1.0% 1.1% Research UBS Global 3.1% 1.7% 1.1% 1.1% Research * UBS Global Research and UBS Global Wealth Management are distinct, independent divisions in UBS Group * Wells Fargo Investment Institute is a wholly owned subsidiary of Wells Fargo Bank (Compiled by the Broker Research team in Bengaluru; Editing by Sriraj Kalluvila and Tasim Zahid)
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