UBS Predicts S&P 500 Will Skyrocket to 7,500 in 2026—Here’s Why
Wall Street’s crystal ball is glowing bullish. UBS just dropped a bombshell forecast: the S&P 500 could hit 7,500 next year. That’s not just a rally—it’s a moonshot.
The Fuel Behind the Fire
Forget ‘slow and steady.’ Analysts point to a cocktail of corporate earnings, Fed policy pivots, and—let’s be real—FOMO driving the charge. Because nothing fuels a market like the fear of missing out.
A Reality Check for the Bulls
Sure, 7,500 sounds juicy. But remember: Wall Street’s predictions have the shelf life of a meme stock. Caveat emptor—especially when banks start tossing around round numbers.
One thing’s certain: if UBS is right, traders will party like it’s 2021. If they’re wrong? Well, there’s always crypto.
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“We see S&P 500 earnings growing at 14.4% through 2026,” said UBS. “After a couple of slow quarters, growth should begin to accelerate from (the second quarter of next year).”
UBS Expects Broader Rally in 2026 but Warns of Near-Term ‘Soft Patch’
By the second quarter of 2026, UBS predicts that “lower-quality cyclicals” will benefit from the rally, not just large-cap technology stocks.
At the same time, UBS has warned of a “soft patch” over the next four to five months as the effects of tariffs further materialize into consumer prices and global exports. The firm has also cautioned that its 2026 price target is largely based on earnings growth instead of a multiple rerating. “The contribution from valuation is likely to be a small negative,” said UBS.
