UBS raised the S&P 500 target level, optimistic that AI and profit growth will continue to drive the bull market

Comparatively, UBS raised its target level in the S&P 500 index. It is expected that the target level in December 2026 will rise to 8100 points, and the target level will rise further to 8,400 points in June 2027, due to strong corporate profit growth and continued economic resilience.

UBS expects S&P 500 earnings per share (EPS) to reach $350 in 2026 and $400 in 2027, mainly driven by performance in the technology, semiconductor and energy industries.

The bank continues to be optimistic that the US economy will remain resilient, the Federal Reserve's policy will remain patient, and the application of artificial intelligence will accelerate, believing that there is still room for continuation of the current bull market.

However, UBS also suggests potential risks, including factors such as rising oil prices, re-heating inflation, and falling short of expectations in AI investment, which may put pressure on market valuations and upward momentum.