AI innovation has driven much of the S&P 500’s (SPX) gains this year, and is expected to continue doing so next year, according to Deutsche Bank. On Monday, the firm raised its 2026 price target for the index to 8,000, the highest on Wall Street so far. The new target implies upside of 21% from current levels.
TipRanks Black Friday Sale
- Claim 60% off TipRanks Premium for the data-backed insights and research tools you need to invest with confidence.
- Subscribe to TipRanks' Smart Investor Picks and see our data in action through our high-performing model portfolio - now also 60% off
“Rapid AI investment and adoption will continue to dominate market sentiment,” said Deutsche strategists. “We see (U.S.) discretionary investor positioning as a source of potential market upside.”
Deutsche Sees Strong EPS, GDP Growth in 2026
Deutsche cites several catalysts that could boost the stock market, such as lower interest rates, easing trade uncertainty, tax cuts, and a “mechanical rebound from a government shutdown.”
Furthermore, the bank expects the S&P 500’s 2026 EPS to grow by 14% to $320 and U.S. gross domestic product (GDP) to grow by 2.4%.
Deutsche isn’t the only Wall Street firm with a bullish outlook on the benchmark index. Morgan Stanley has a 2026 price target of 7,800, while HSBC expects a rise to 7,500.
Stay ahead of macro events with our up-to-the-minute Economic Calendar — filter by impact, country, and more.