Overview
- Barclays raised its year-end S&P 500 target to 7,950 and lifted its 2026 earnings-per-share forecast to $365 on Sept. 10, citing stronger-than-expected second-quarter tech results.
- The firm said expected AI-related capital spending by major cloud providers will exceed $1.1 trillion in 2027 and that those investments are central to its earnings-driven case for a higher index level.
- Several other major brokers have moved targets higher in the same period, with recent calls including UBS at 8,100, JPMorgan at 8,000, CFRA at 8,050, and HSBC at 8,100.
- Barclays downgraded the Utilities sector to Neutral because of regulatory friction over California wildfire liability rules and growing local opposition to data center permitting that can limit utility growth.
- Banks stressed clear downside risks from high interest rates, persistent inflation, geopolitical shocks and uncertain returns on heavy AI spending and laid out scenario ranges from about 6,750 on the downside to 8,350 on the upside.