HSBC lifts S&P 500 year-end target

HSBC has raised its year-end 2026 price target for the S&P 500 from 7,650 to 8,100, citing stronger-than-expected corporate earnings growth across major sectors. According to strategist Nicole Inui, the benchmark index's upward revision is underpinned by robust earnings momentum, following an estimated 40% surge in first-half 2026 earnings per share and expectations for over 25% growth in the second half. For the full year, HSBC forecasts an aggregate 33% expansion in earnings to $360 per share, supported by a 22.5 times price-to-earnings multiple. The bank highlighted surging capital expenditures in artificial intelligence as a primary growth engine, directly benefiting semiconductor companies and broader technology equities against a backdrop of resilient consumer and macroeconomic conditions. On a sectoral level, HSBC reiterated positive stances on technology, financials, and industrials. Addressing prevalent market anxieties, HSBC downplayed concerns regarding Federal Reserve interest rate hikes, geopolitical risks, and U.S. midterm elections, forecasting that the central bank will remain on hold and 10-year Treasury yields will stabilize around 4.65% by year-end.