Dec 24 (Reuters) - Artificial intelligence will remain the centerpiece of investment strategies, global brokerages said in their 2026 outlooks, with the benchmark S&P 500 index on track to post another
year of gains.
"We think fears of a collapse in the AI narrative are overdone and expect economic expansion to continue for yet another year," Barclays strategists said.
Still, risks loom. Inflation surprises, stretched valuations and tariff tensions could trigger corrections, even as analysts expect AI and Federal Reserve rate cuts to keep the bull market alive.
Strategists expect global economic growth to be resilient. Global GDP should rise between 2.4% and 3.3%, as per estimates.
The benchmark index will rise nearly 12% to 7,490 by end-2026, marking a fourth straight year of advances if 2025 closes higher, according to a Reuters poll.
Following are forecasts from some top brokerages on economic growth and the performance of U.S. stocks in 2026:
Forecasts for stocks:
Brokerage 2026 S&P 500 index target
BofA Global Research 7,100
Societe Generale 7,300
Barclays 7,400
UBS Global Research 7,500
Jefferies 7,500
HSBC 7,500
J.P.Morgan 7,500
Canaccord Genuity 7,500
BNP Paribas 7,500
Goldman Sachs 7,600
Citigroup 7,700
UBS Global Wealth Management 7,700
Evercore ISI 7,750
Morgan Stanley 7,800
Seaport Research Partners 7,800
Deutsche Bank 8,000
Oppenheimer Asset Management 8,100
Wells Fargo Investment Institute 7,400-7,600
Real GDP Growth:
Brokerage GLOBAL U.S. EURO AREA UK
Citigroup 2.6% 1.9% 0.8% 1.0%
Goldman Sachs 2.8% 1.3%
2.1% 0.9%
Morgan Stanley 3.2% 1.8% 1.1% 1.2%
TD Securities 2.8% 2.0% 0.8% 1.0%
Wells Fargo 2.8% 2.3% 1.2% 1.2%
UBS Global Wealth 3.1% 1.7% 1.1% 1.1%
Management
Deutsche Bank 3.1% 2.4% 1.1% 1.2%
HSBC 2.4% 1.7% 1.0% 1.2%
J.P.Morgan 2.5% 2.0% 1.3% 0.9%
BofA Global Research 3.3% 2.4% 1.0% 1.1%
UBS Global Research 3.1% 1.7% 1.1% 1.1%
* UBS Global Research and UBS Global Wealth Management are distinct, independent divisions in UBS Group
* Wells Fargo Investment Institute is a wholly owned subsidiary of Wells Fargo Bank
(Compiled by the Broker Research team in Bengaluru; Editing by Sriraj Kalluvila and Tasim Zahid)
