HSBC has raised its year-end 2025 target for the S&P 500 to 6,400, pointing to continued strength in the technology sector and diminishing policy risks as key drivers of upside.
The upgrade, issued Tuesday, reflects surging investor enthusiasm around artificial intelligence as well as a decline in macroeconomic uncertainty, particularly around U.S. trade policy.
- “We raise our year-end 2025 S&P 500 target to 6,400 as earnings surprise to the upside and policy uncertainty eases,” the bank said in a note to clients.
HSBC, highlighted two dominant market forces:
- AI trade is powering the tech/AI cohort higher (roughly half of the S&P 500)
- Reduced policy uncertainty (namely tariffs) is fueling the ‘rest’ of the market
The upgrade comes amid broader optimism that U.S. corporate earnings will continue to beat expectations and that a more stable policy environment will support further gains across sectors.
This article was written by Eamonn Sheridan at investinglive.com.