Is A New Bull Market On The Horizon? Wall Street Sets High Price Targets for US Stocks

As the booming development of artificial intelligence reshapes the economy and financial markets, bold stock market predictions have begun to emerge on Wall Street—some of which even set a target of 8000 points for the S&P 500 index.

This Tuesday, Eastern Time, Deutsche Bank, in its latest outlook report, set a year-end 2026 target price of 8000 points for the S&P 500 index, forecasting that US stocks will benefit from stronger capital inflows, share buyback activities, and sustained earnings growth.

Deutsche Bank's target price is already on the higher end compared to most of its Wall Street peers. In contrast, HSBC set a 2026 target of 7500 points, while JPMorgan Chase set its target at 7500 points, with a potential upper limit reaching 8000 points if the Federal Reserve continues to cut interest rates.

Morgan Stanley also expects US stocks to perform strongly next year. Against the backdrop of what its strategist Mike Wilson calls a "new bull market," the index is projected to close at 7800 points by the end of 2026.

Meanwhile, Wells Fargo anticipates that US stocks will see double-digit gains over the next 12 months and has set a year-end 2026 target of 7800 points. The bank expects a two-phase rally next year, as the market shifts from "inflation hope" trading in the first half to a stronger AI-driven surge in the second half.

The firm believes that US policy and liquidity should support the US stock market as the midterm election cycle approaches next year. However, Wells Fargo also noted that the market is becoming increasingly intertwined with the overall US economy.