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Bank of America Predicts 8% S&P 500 Surge by 2026

10/1/2025

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Story summary
  • Bank of America forecasts Standard & Poor's 500 Index (S&P 500) up 8% in 2026, to 7,200.
  • Earnings are expected to grow 12% next year, driven by productivity and investment.
  • PCE index signals stable inflation, easing fears of Fed moves and boosting Vistra Corp. and Tesla.
  • Wall Street closed higher: Dow +0.7%, Nasdaq +0.4%, S&P 500 +0.6%; all sectors rose.