Wells Fargo Raises S&P 500 Target to 7,100 Amid Bullish Market Outlook
Wells Fargo has lifted its year-end 2025 target for the S&P 500 to 7,100, signaling continued confidence in U.S. equities. The revised forecast implies a 5% upside from current levels, with the index yet to breach the 7,000-point threshold. Analysts cite retail investor participation and improving liquidity as key drivers for the anticipated rally.
The bank projects an 8% annualized return through 2030 if corporate earnings grow at least 10% annually, potentially pushing the index to 9,500. While concerns linger about consumer weakness and labor market adjustments, potential Fed rate cuts and government stimulus could fuel a year-end risk-on rally.
Technology sector investments, particularly from megacaps like Meta and Alphabet, are viewed as constructive despite AI-related capex concerns. The analysis suggests market participants may be underestimating the durability of the current expansion cycle.
