Barclays Raises SP 500 Target on Big Tech Earnings

Barclays just raised its year end S&P 500 target to 7,950 from 7,800, leaving about four percent upside from recent closes. The bank highlighted durable demand for artificial intelligence and repeated earnings beats from Big Tech as the main drivers keeping momentum alive.

Venu Krishna, head of US equity strategy at Barclays, lifted the firm earnings estimate for 2026 to $365 per share. Big Tech earnings grew 35 percent in the second quarter compared to the prior year. Other major banks, including JPMorgan and HSBC, also recently upgraded their forecasts for the benchmark index.

While tech stocks continue to lead the market, companies outside the artificial intelligence sector are starting to catch up. Traders should watch upcoming tech spending figures and corporate earnings reports to see if this momentum can sustain the broader market rally through the end of the year.