How high can the S&P 500 go in 2026?
The S&P 500, Wall Street's main stock market index representing the 500 largest companies in the United States, has enjoyed an impressive run in recent years. After gains exceeding 20% in 2024 and around 18% in 2025, many investors are wondering: how high can it go in 2026?
As of January 2026, the index is trading around 6,900-6,920 points (according to recent closing data). The Wall Street consensus points to another year of gains, albeit at a more moderate pace than in previous years. The average forecast from major firms places the year-end target between 7,500 and 7,800 points, which would imply an advance of approximately 9-13% from current levels.
Among the most notable estimates are:
Goldman Sachs projects a total return of 12% by 2026, placing the index near 7,600-7,700 points.
Morgan Stanley is somewhat more optimistic, with a target of around 7,800 points, based on corporate profit growth of 17%.
JPMorgan and Barclays are hovering around 7,500 points.
Bank of America is more conservative with 7,100-7,400 points.
The most bullish voices, such as Oppenheimer, see potential up to 8,100 points (approximately +18% from now), relying on the absence of signs of the bull market exhausting and on the expansion of productivity thanks to artificial intelligence.
The main driver of this optimism remains corporate earnings growth, estimated at 14-17% by 2026, fueled by the widespread adoption of AI, further interest rate cuts by the Federal Reserve (which would benefit cyclical companies), and a US economy avoiding recession. Furthermore, a sector rotation is expected: less reliance on the "Magnificent 7" (the large technology companies) and greater participation from other sectors.
However, it's not all rosy. There are risks that could limit the upside potential or even trigger significant corrections: geopolitical tensions, aggressive trade policies under the current administration, persistent inflation that hinders interest rate cuts, or an already high valuation (the forward P/E ratio is around 22-23 times, above historical averages).
In summary, the most likely base case scenario for the end of 2026 is an S&P 500 between 7,500 and 7,900 points, with a real possibility of surpassing 8,000 if AI and economic growth exceed expectations. This would mark the fourth consecutive year of strong gains, unusual but not impossible in environments of low inflation and technological advancements. Investors should prepare for increased volatility and view potential corrections as entry opportunities.
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