Reuters Survey: S&P 500 Index to Target 7490 Points Next Year, Potential Pullback in the Next Three Months

On November 26th, Reuters' survey of stock market strategists indicated that the S&P 500 index is anticipated to increase by approximately 12% from its present level by the end of 2026. This is driven by a healthy U.S. economy, the strong performance of tech companies, and the Federal Reserve's maintenance of loose monetary policy. Based on the median forecast from a survey conducted among over 45 strategists, analysts, and portfolio managers from November 14th to 25th, the S&P 500 index is projected to finish at 7490 in 2026, which is 11.7% higher than its current level. If the stock market closes at a higher level in 2025, it will mark the fourth consecutive year of gains for the benchmark index. Among the 14 respondents who provided additional answers, 8 believe there is a greater possibility of a pullback in the S&P 500 in the next three months. Analysts pointed out that the risks to the overall optimistic forecast encompass a potential increase in inflation and uncertainty regarding the outlook for interest rate cuts. The survey predicted that the Dow would close next year at 50,566, which is more than 7% higher than the current level. The index closed at 47,112.45 on Tuesday. (FXStreet)