The S&P 500 rose 0.19% on Monday, closing at a record high of 7,412.84, while the Nasdaq Composite gained 0.1% to end at 26,274.13. Both indexes achieved fresh all-time intraday highs during the session before closing at records. The Dow Jones Industrial Average advanced 95.31 points, or 0.19%, to 49,704.47. This performance follows the S&P 500 and Nasdaq rallying more than 2% and 4%, respectively, last week, with both indexes recording their sixth-straight winning weeks — a first for each since 2024. The Dow rose 0.2% for the week, notching its fifth week of gains out of the last six.
HSBC Research has raised its S&P 500 year-end target price to 7,650 from the previous 7,500, citing the index's return to historical highs as technology stocks rebound. The brokerage firm increased its 2026 EPS forecast by 8% based on solid earnings from the first quarter, now expecting 2026 EPS to grow 20% year-over-year to USD 325. According to HSBC, technology stocks and the US "Magnificent Seven" remain the key drivers, with the sector now accounting for more than half of the S&P 500's market capitalization and contributing over 40% of index earnings. The brokerage believes a rebound in sentiment could push the S&P 500 above the 8,000 mark, with each potential path adding 100 to 700 points to the index.
A year-old Donald Trump quote urging Americans to 'buy stock now' is back at the top of crypto Twitter, paired with analyst James Thorne's forecast that sees the S&P 500 climbing to 8,000 by year-end 2026. According to reports from Fortune, Trump's verified quote came on May 8, 2025, after signing a US-UK trade deal in the Oval Office, where he told reporters: 'You better go out and buy stock now... Let me tell you, this country will be like a rocket ship that goes straight up.' The quote has been repackaged with analyst James Thorne's S&P 500 targets, with the argument that risk assets, including crypto, are about to go vertical.
JPMorgan Chase analysts have upgraded their outlook for the S&P 500, identifying three key factors that could drive the index to 8,000 by year-end. As reported by JPMorgan, the first driver is the possibility of 'swift resolution' to geopolitical issues, particularly regarding potential war in Iran coming to an end soon. An easing of global tensions would improve investor sentiment and justify higher stock multiples. The second factor centers on greater earnings growth potential as energy and tech companies have performed well this year, with increasing earnings expected to drive valuations higher. The third catalyst is renewed excitement around artificial intelligence stocks, with many analysts pointing to Anthropic's new Mythos model announced in early April as a key momentum driver for AI stocks.
Micron Technology shares surged 6.5%, supporting the market Monday as the memory chip rally continued. Artificial intelligence darling Nvidia jumped nearly 2%, demonstrating the strength of the tech sector. According to Jay Hatfield, founder and CEO at Infrastructure Capital Advisors, 'The tech boom is just too powerful to let the fact that energy prices are high affect the U.S. economy or the U.S. stock market.' He believes the market might be 'more flattish' for the next couple months as long as the overhang from the Iran war persists, with such overhang being offset by the 'unprecedented' tech boom. This resilience comes as analysts like James Thorne at Wellington-Altus Private Wealth maintain their S&P 500 target of 8,000 by year-end 2026, with room to overshoot toward 8,400.
