Capital Economics has indicated that the technology-driven S&P 500 rally is expected to regain strength after a sluggish start to the year, as tech firms continue to report strong earnings marked by double-digit growth. Despite initial concerns over AI spending and geopolitical tensions affecting performance, the firm anticipates earnings will continue to rise. This outlook is buoyed by robust innovation in cloud computing and software services, which support the optimistic forecast of an 8,000 target for the S&P 500 by the end of 2026.
Capital Economics foresees S&P 500 tech rally rebound with 8,000 target by end of 2026
