UBS Lifts S&P 500 Targets to 8,100 as Futures Rebound After Dow's 700-Point Selloff

U.S. stock futures rose Friday morning as Wall Street attempted to recover from a sharp yield-driven selloff that sent the Dow Jones Industrial Average down 700 points on Thursday, its worst single-day drop since July 29. Despite the rebound, the S&P 500 remained on track for its first weekly loss since late July, while the Nasdaq 100 was set to snap a five-day losing streak as Treasury yields stabilized and Bitcoin surged. UBS added a bullish counterpoint, raising its S&P 500 price targets to 8,100 for December 2026 and 8,400 for June 2027.

The bank lifted its earnings-per-share forecasts to $350 for 2026 and $400 for 2027, crediting strength in technology, semiconductors and energy. UBS cited resilient economic growth, a patient Federal Reserve and accelerating AI adoption as the pillars of its outlook, while flagging higher oil prices, renewed inflation and disappointing AI returns as the key risks. The bullish call is supported by data from Wolfe Research, which found that 69 percent of the 465 S&P 500 companies reporting in Q2 beat revenue expectations, and that 64 percent of firms issuing Q3 guidance exceeded consensus forecasts, the highest share since the post-COVID period.

Wolfe projects adjusted earnings growth of roughly 27 percent for 2026, calling it one of the strongest fundamental outlooks in more than 50 years, with AI capital expenditure the central variable for whether that momentum extends into 2027.