HSBC has raised its 2025 year-end S&P 500 (SPX) price target to 6,400 from 5,600, joining a cohort of other investment banks that have lifted their forecasts in recent weeks. HSBC cites strength from AI and tech companies and a more certain trade outlook as reasons for its revised price target.
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“The AI trade is powering the tech/AI cohort higher (roughly half of the S&P 500), while reduced policy uncertainty (namely tariffs) is fueling the ‘rest’ of the market,” said HSBC strategists in a note to clients, adding that tech company margins have room to grow.
HSBC Issues Bull-Case Price Target of 7,000
Still, the multinational bank’s price target is only 1.1% higher than Monday’s closing price. In a bull-case scenario, HSBC believes the S&P 500 could finish the year at 7,000, or 10.6% above Monday’s close.
HSBC’s higher target follows similar actions from Oppenheimer, Goldman Sachs, and Bank of America. Oppenheimer has a year-end SPX price target of 7,100, the highest on the Street.
The S&P 500 has returned 7.62% year-to-date.
