As per Bpaynews, Bank of America (BofA) has projected the S&P 500 to reach around 7,100 by 2026, representing a modest 5% gain, despite expecting ~14% earnings growth. The bank attributes the expected valuation compression to fading liquidity support, softer buybacks, increased corporate capex, and limited scope for further central bank easing. BofA also warns that AI monetization and power supply constraints could temper the sector’s growth narrative. The bank has upgraded Staples to Overweight and cut Consumer Discretionary, signaling a shift toward capex-driven and defensive sectors. The S&P 500 is expected to trade within a wide 5,500–8,500 range, reflecting high uncertainty and potential for larger swings around macroeconomic and policy developments.
BofA Forecasts 5% S&P 500 Gain by 2026 Amid Valuation Compression and AI Constraints
BpaynewsShare
Source:Show original
Disclaimer: The information on this page may have been obtained from third parties and does not necessarily reflect the views or opinions of KuCoin. This content is provided for general informational purposes only, without any representation or warranty of any kind, nor shall it be construed as financial or investment advice. KuCoin shall not be liable for any errors or omissions, or for any outcomes resulting from the use of this information.
Investments in digital assets can be risky. Please carefully evaluate the risks of a product and your risk tolerance based on your own financial circumstances. For more information, please refer to our Terms of Use and Risk Disclosure.