Citi Raises S&P 500 Target to 8,100 Despite Friday’s Selloff

Citigroup strategists lifted their year-end S&P 500 forecast to 8,100, a 5% increase from their previous 7,700 target, even as the index posted its worst single-day decline since October. The revision comes despite Friday's 2.5% drop that snapped a nine-week rally.

The firm simultaneously upgraded its 2026 earnings-per-share projection to $350 (from $320) and introduced a preliminary 2027 EPS target of $400. "We maintain high confidence in continued earnings beats," said lead strategist Scott Chronert, citing strong Q1 results as validation.

Friday's selloff, driven by AI spending concerns and Broadcom's earnings, saw the Nasdaq log its steepest single-day fall in over a year. Chronert remains unfazed: "This isn't about multiple expansion—fundamentals will drive the next leg up." The new target implies 10% upside from current levels.

A warning hides in the bullish outlook: Citi anticipates potential AI investment fatigue post-2027, which could trigger a market "hangover." For now, the tape tells a different story—the S&P remains up 14% year-to-date.