With 2026 just months away, Wall Street firms have begun releasing their price targets for the new year. On Monday, UBS said that it expects the S&P 500 (SPX) to end 2026 at 7,500, implying upside of about 10% from current levels.
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“We see S&P 500 earnings growing at 14.4% through 2026,” said UBS. “After a couple of slow quarters, growth should begin to accelerate from (the second quarter of next year).”
UBS Expects Broader Rally in 2026 but Warns of Near-Term ‘Soft Patch’
By the second quarter of 2026, UBS predicts that “lower-quality cyclicals” will benefit from the rally, not just large-cap technology stocks.
At the same time, UBS has warned of a “soft patch” over the next four to five months as the effects of tariffs further materialize into consumer prices and global exports. The firm has also cautioned that its 2026 price target is largely based on earnings growth instead of a multiple rerating. “The contribution from valuation is likely to be a small negative,” said UBS.
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