Factbox-What to expect in 2026: Brokerage forecasts for S&P 500, global GDP

Dec 24 (Reuters) - Top brokerages expect the benchmark S&P 500 index to extend its rally in 2026, as investors pile into artificial intelligence plays and bet on ?reduced borrowing costs to sustain the momentum.

The benchmark index will ?rise nearly 12% to 7,490 by end-2026, ?marking a fourth straight year of ?advances if ?2025 closes higher, according to a Reuters poll.

Strategists from major ?investment banks expect AI ?momentum and Federal Reserve rate cuts to keep the bull market alive, even ?as they warn inflation, ?stretched ?valuations and tariff tensions could trigger corrections.

They expect global economic growth to be resilient. Global ?GDP should rise between 2.4% and 3.3%, as per estimates.

Following are forecasts from some top brokerages on economic growth and the performance of U.S. stocks in 2026:

Forecasts for stocks:

Brokerage 2026 ?S&P ?500 index target?

BofA Global Research???? 7,100

Societe Generale 7,300

Barclays 7,400

UBS Global Research 7,500

Jefferies 7,500

HSBC 7,500

J.P.Morgan 7,500

Canaccord Genuity 7,500

BNP Paribas 7,500

Goldman Sachs 7,600

Citigroup 7,700

UBS Global Wealth 7,700

Management

Evercore ISI 7,750

Morgan ?Stanley? 7,800

Seaport Research Partners 7,800

Deutsche Bank? 8,000

Oppenheimer Asset 8,100

Management

Wells Fargo Investment 7,400-7,600

Institute

Real GDP Growth:?

Brokerage GLOBAL U.S. EURO AREA UK

Citigroup 2.6% 1.9% 0.8% 1.0%

Goldman Sachs 2.8% 2.1% 1.3% 0.9%

Morgan Stanley? 3.2% 1.8% 1.1% 1.2%

TD Securities 2.8% 2.0% 0.8% 1.0%

Wells Fargo? 2.8% 2.3% 1.2% 1.2%

UBS Global Wealth 3.1% 1.7% 1.1% 1.1%

Management?

Deutsche Bank? 3.1% 2.4% 1.1% 1.2%

HSBC 2.4% 1.7% 1.0% 1.2%

J.P.Morgan 2.5% 2.0% 1.3% 0.9%

BofA Global 3.3% 2.4% 1.0% 1.1%

Research

UBS Global 3.1% 1.7% 1.1% 1.1%

Research

* UBS Global Research and UBS Global Wealth Management are distinct, independent divisions in UBS Group

* ?Wells Fargo Investment Institute is a wholly owned subsidiary of Wells Fargo Bank

(Compiled by the Broker Research team in ?Bengaluru; Editing by Sriraj Kalluvila and Tasim Zahid)