Bank of America hikes S&P 500 target after Al trade cracks

Every big call on the S&P 500 has an expiration date. When the bearish thesis breaks, the strategists who called it usually stop repeating it. Bank of America's team just did both this week. A more bullish market call, quietly BofA's US Equity and Quant Strategy team lifted its 2026 year-end S&P 500 target to 7,400 from 7,100 and set a 12-month target of 7,800, according to a note dated Sept. 18 that was shared with TheStreet. Both numbers imply modest returns from current levels rather than a runaway rally. Multiples have compressed for a good reason: earnings have strengthened, according to the note. The bank is forecasting 33% S&P 500 earnings growth in 2026 and 12% in 2027.