Wells Fargo Just Boosted S&P 500 Price Target Ahead of Critical Fed Rate Decision

Wall Street's optimism gets a caffeine boost as Wells Fargo hikes S&P 500 forecasts right before the Fed's big move.

The Timing Play

Nothing says confidence like upping projections hours before the central bank reshapes market dynamics—either a masterstroke or spectacularly poor timing.

Market Mechanics in Motion

Traders now juggle upgraded targets against potential rate pivots, creating volatility opportunities usually reserved for crypto exchanges.

Because when traditional finance plays prediction games, everyone wins—except those on the wrong side of the spread.

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That comes as the Fed is expected to begin its next rate cut cycle on Tuesday with a 25 bps reduction, potentially boosting stocks by lowering borrowing costs for both consumers and businesses.

Wall Street Ramps Up S&P 500 Targets on AI Momentum

Wells Fargo’s revised price target reflects a broader trend among Wall Street firms as AI propels the market higher. During the past month, Barclays raised its forecast to 6,450 from 6,050, while Deutsche Bank was even more bullish with a 7,000 target, up from 6,550.

“There is froth, but as long as AI capex remains intact, the bull market should continue,” said Wells Fargo chief equity strategist Ohsung Kwon. The bank also believes that deregulation, tax cuts from The One Big Beautiful bill, and tariff delays will provide tailwinds for the benchmark index.