NEW YORK CITY, New York: Morgan Stanley is turning more optimistic on U.S. equities heading into 2026, boosting its year-end target for the S&P 500 as it predicts that American markets will outshine global peers in the next phase of the economic cycle.
In a set of global outlook notes published on November 17, the bank said it now expects the S&P 500 (.SPX) to reach 7,800 by the end of 2026. The forecast reflects what Morgan Stanley describes as strong corporate earnings momentum, productivity gains tied to artificial intelligence, and a policy environment that remains broadly supportive of risk assets.
The bank did not immediately clarify its previous target for the index.
