Wells Fargo has lowered its 2026 S&P 500 (SPX) price target to 7,300 from 7,800, citing growth risks from the U.S.-Iran war and lower-than-expected tax returns. The new target implies upside of 12% from current levels.
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Forget margin or options. Here's how the pros trade QQQ“We’re incorporating the emerging risk that wasn’t our base case heading into the year,” wrote Wells Fargo equity analyst Ohsung Kwon in a note to clients. “Tax returns are also tracking lower than expected.”
Tech Stocks Seen as Attractive amid Oil Surge
Kwon believes that the tech sector currently provides an attractive entry point, as it is more immune to oil supply shocks than other sectors. Brent crude oil futures (BZ) have risen 37% since the start of the war on February 28, while the average price for a gallon of gas in the U.S. topped $4 a gallon on Monday for the first time since 2022.
Kwon added that the stock market has held up well in the face of geopolitical tensions, which could be caused by investors hedging their positions instead of selling them. At the same time, headwinds are “building exponentially each day.”