What will S&P 500 (SPX) hit by end of December 2026?
The S&P 500 closed at 7,652.86 on August 24, 2026, off roughly 1.9% from its August 13 record of 7,798.99 amid a pullback driven by rising 10-year Treasury yields near 4.73% and tech-sector pressure. Year-to-date gains stand near 12%, supported by robust Q2 earnings growth exceeding 50% year-over-year for reporting S&P 500 companies, fueled by AI-related capital spending and revenue expansion. Major banks have lifted 2026 year-end targets into the 7,800–8,400 range, citing upgraded EPS forecasts of $350–$400 alongside resilient economic data. Key near-term catalysts include the August 28–29 Jackson Hole symposium featuring Fed Chair Kevin Warsh, July PCE inflation, Q2 GDP revisions, and upcoming tech earnings. Geopolitical risks tied to Iran-related oil prices and elevated U.S. debt levels above $40 trillion remain primary swing factors for year-end resolution.