What will S&P 500 (SPX) hit by end of December 2026?
Strong corporate earnings momentum, fueled by AI investment returns and broad sector gains, underpins trader sentiment for the S&P 500 reaching higher levels by December 2026, with the index recently trading near 7,650 after peaking above 7,800. Wall Street firms have lifted year-end targets to 7,800–8,100, reflecting upward revisions to 2026 EPS estimates around $350 amid resilient GDP growth and stable labor conditions. The Federal Reserve's hold at the 3.50–3.75% funds rate range, despite three hawkish dissents at the July meeting, leaves monetary policy as a key swing factor, with September FOMC, upcoming PCE and CPI releases, and Jackson Hole speeches likely to recalibrate rate-hike odds and Treasury yields. Market-implied odds favor further gains if inflation moderates without derailing expansion.