Wells Fargo has now raised its S&P 500 (SPX) price target twice since July, recently pushing its year-end estimate to between 6,600 and 6,800 from between 6,300 and 6,500. The bank also raised its 2026 SPX price target to between 7,400 and 7,600, up from its prior estimate of between 6,900 and 7,100.
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That comes as the Fed is expected to begin its next rate cut cycle on Wednesday with a 25 bps reduction, potentially boosting stocks by lowering borrowing costs for both consumers and businesses.
Wall Street Ramps Up S&P 500 Targets on AI Momentum
Wells Fargo’s revised price target reflects a broader trend among Wall Street firms as AI propels the market higher. During the past month, Barclays raised its forecast to 6,450 from 6,050, while Deutsche Bank was even more bullish with a 7,000 target, up from 6,550.
“There is froth, but as long as AI capex remains intact, the bull market should continue,” said Wells Fargo chief equity strategist Ohsung Kwon. The bank also believes that deregulation, tax cuts from The One Big Beautiful bill, and tariff delays will provide tailwinds for the benchmark index.
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