Prepare for an S&P 500 ‘Sugar High,’ Says Wells Fargo

The S&P 500 (SPX) is primed for a three-month “sugar high” as investors look past the U.S.-Iran war, according to Wells Fargo.

Claim 30% Off TipRanks

Strategists led by Ohsung Kwon believe the benchmark index could soar to 7,300 by July, powered by President Trump’s tax policies, corporations improving AI monetization, and the U.S. hosting the World Cup. “We remain structural bulls, and our ‘tactically cautious’ call didn’t play out,” wrote the team.

S&P 500 Hits Record High as War Fears Ease

The S&P 500 has recovered all of its losses since the war began on February 28 and secured a new all-time high of 7,040 on Wednesday. Investors have become increasingly confident that the two sides will be able to reach a deal and end the conflict while restoring access to the Strait of Hormuz.

Meanwhile, consumers are set to receive higher tax refunds this year, with Wells Fargo predicting that the amount will offset a higher cost of living for the next six months. However, the firm also expects inflation to trend higher during the second half of 2026 alongside slowing growth.