Wall Street Banks Update 2026 S&P 500 Targets: Goldman Sachs Projects 7,600

This analysis is based on a December 14, 2025, report from Finbold [1], which disclosed updated 2026 S&P 500 targets from major Wall Street banks. Goldman Sachs projects the index will reach 7,600, underpinned by a 2026 earnings per share (EPS) forecast of $305 [0]. Morgan Stanley has issued a more bullish target of 7,800, also driven by earnings expectations [0]. As of December 12, 2025, the S&P 500 closed at 6,827.41, reflecting a 16.08% year-to-date (YTD) rally [0]. The 2025 performance has been fueled by widespread AI adoption across sectors and strong corporate earnings [0]. Recent sector dynamics show mixed performance: Technology stocks declined 1.69% on December 12, while Basic Materials gained 1.60%, indicating potential sector rotation away from overvalued tech into cyclical segments [0].

1. The 2026 targets (7,600 to 7,800) imply 11.3% to 14.2% growth from the December 12 closing price, signaling continued bullish sentiment despite the S&P 500’s robust 2025 rally [0].
2. The projected EPS of $305 (Goldman Sachs) aligns with the broader analyst consensus range of $300-$320, underscoring expectations for sustained earnings-driven growth [0].
3. The recent tech sector pullback and simultaneous gain in Basic Materials suggest ongoing portfolio rebalancing rather than a reversal of the index’s upward trajectory [0].

• Opportunities
  : Ongoing AI integration across industries is expected to enhance productivity and earnings for S&P 500 components [0]. Potential Federal Reserve policy easing in 2026 could further support market liquidity and valuations [0].
• Risks
  : Slower-than-expected Fed easing, margin pressures from rising input costs, stretched valuations in large-cap tech stocks, and geopolitical uncertainties (such as global supply chain disruptions) pose downside risks [0]. The December 12 tech sell-off warrants monitoring to determine if it is a temporary correction or a more significant trend shift [0].

As of December 14, 2025, major Wall Street banks have updated their 2026 S&P 500 targets to 7,600 (Goldman Sachs) and 7,800 (Morgan Stanley), with growth driven by AI adoption and corporate earnings. The S&P 500 has rallied 16.08% YTD in 2025, closing at 6,827.41 on December 12. While the outlook remains bullish, investors should be aware of risks including Fed policy uncertainty, margin pressures, and sector rotation dynamics. This information provides context for market participants to assess the index’s potential trajectory and associated risks.