Barclays has raised its year-end target for the S&P 500 to 6,050, up from 5,900, citing reduced trade uncertainty and expectations for normalized earnings growth in 2026.
The revised forecast follows similar upgrades from Goldman Sachs, UBS, RBC Capital Markets, and Deutsche Bank, reinforcing Wall Street’s confidence in the market’s resilience. The new target represents a 1.32% upside from the index’s latest close at 5,970.37.
The S&P 500 surged 6.2% in May, its best month since November 2023. The rally was fueled by:
- A softer tone on tariffs from President Trump
- Strong corporate earnings
- Cooling inflation data
Barclays also introduced a 2026 EPS forecast of $285 and set a 6,700 target for the index by the end of that year.
“After tariff headwinds are absorbed throughout the remaining quarters of FY25, we expect that 2026 will return to a more normalized pace of earnings growth,” said Barclays strategists led by Venu Krishna.The firm expects no additional direct tariff impacts in 2026, though secondary effects may still weigh on growth and inflation. Barclays maintained its 2025 EPS estimate at $262, reflecting confidence despite ongoing trade pressures.