HSBC raised its year‑end 2026 target for the S&P 500 to 8,100 from 7,650 in a note to clients dated 08/09/2026 at 14:00.
The bank expects full‑year 2026 earnings growth of 33%, equivalent to $360 per share, and applies a 22.5‑times price‑to‑earnings multiple to derive the target.
It also forecasts the 10‑year Treasury yield at 4.65% by the end of 2026.
First‑half 2026 earnings‑per‑share growth is running close to 40%, while the second half is projected to continue at a 25%‑plus pace.
HSBC remains positive on technology, financials and industrials, highlighting AI capital spending as a key catalyst for semiconductors and AI‑linked equities, but is selective on consumer‑related areas.
Strategist Nicole Inui wrote that concerns over Federal Reserve rate hikes, geopolitical uncertainty, U.S. midterm elections and rising liquidity needs are overdone.
She added that sentiment and the multiple investors are willing to pay for forward earnings remain less certain, noting that tech valuations are range‑bound despite strong earnings and record profit margins, and that multiple expansion may be challenging even as fundamentals improve.
The note referenced InvestingPro’s Tech Titans strategy, which has doubled the S&P 500 in 18 months, citing Super Micro Computer (+185%) and AppLovin (+157%) as notable winners.
