Previously, due to inflation, geographical risk, and uncertainty about the Federal Reserve's policy, Wells Fargo drastically lowered its target price for the end of the year S&P 500 and became cautious about market conditions. Now the bank's attitude has reversed. Wells Fargo raised the S&P 500 target point from 7,300 points to 7950 points at the end of 2026, while also raising earnings expectations for the index's constituent stocks. Wells Fargo expects earnings per share of S&P 500 shares to reach 340 US dollars in 2026, compared to the previous forecast of 315 US dollars; the 2027 earnings per share forecast was also raised from 365 US dollars to 390 US dollars. In other words, Wells Fargo believes profits will be a more sustainable catalyst to push the market to record highs. The bank believes that improved corporate profits, strengthened fundamentals, combined with mitigation of macro risks, and the recovery of market sentiment driven by AI will be the main driving forces.

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