The S&P 500 (SPX) has secured a series of record highs in recent weeks, although more are just around the corner, according to Yardeni Research. On Monday, the firm raised its 2026 year-end price target for the index to 8,250 from 7,700, driven by an “earnings-led meltup.” The target implies upside of 11.4% from current levels.
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Trade QQQ with leverage“The earnings estimates of analysts have been phenomenal,” said Yardeni founder Ed Yardeni. “I’ve never seen anything like it.”
Yardeni Sees Low Bear Market Risk
S&P 500 companies have blown first-quarter earnings out of the water. Over 400 companies have reported so far, with 84% of them posting an earnings beat, according to FactSet. If the percentage holds, it would be the strongest since the second quarter of 2021.
Yardeni sees just a 20% chance of a bear market and says any downturn is unlikely to turn into a recession, instead offering an opportunity to buy the dip.