Barclays increased its S&P 500 year-end prediction to 6,050 from 5,900 because of declining trade tensions and evidence that earnings growth will stabilize by 2026. The forecast upgrades match those of Goldman Sachs and UBS and RBC Capital Markets and Deutsche Bank.
The new forecast indicates that the index will rise 1.3% from its previous closing price at 5,970. The S&P 500 reached its highest monthly gain since November 2023 in May when the market rose 6.2% because of President Trump’s restrained trade policies and decreasing inflation and strong corporate earnings.
Barclays established a 2026 year-end prediction of 6,700 while maintaining its $285 earnings projection for 2026 while keeping its 2025 forecast at $262. Analysts predict that earnings growth will return to normal patterns in 2026 after the tariff-related volatility of 2025 disappears.
The Barclays strategists under Venu Krishna believe that the remaining secondary effects of tariffs on growth and inflation will be easy to handle. The firm’s outlook demonstrates that investors believe trade policy uncertainty has reached its peak which will lead to more stable market growth.
