<div id="readability-page-1"><p>Bank of America expects the S&amp;P 500 (SPX) to rise to 7,100 in 2026, which marks the lowest price target among Wall Street firms so far and implies upside of roughly 4% from current levels.</p><h3>Claim 50% Off TipRanks Premium and Invest with Confidence </h3><ul><li>Unlock  hedge-fund level data  and  powerful investing tools  designed to help you make smarter, sharper decisions  </li><li> Stay ahead of the market with  the latest news and analysis  so your portfolio is always positioned for maximum potential</li></ul> <p>Head of U.S. equity and quantitative strategy Savita Subramanian warned in an appearance on <em>CNBC's</em> &#34;Squawk Box&#34; that AI-related companies with heavy weights in the benchmark index aren't &#34;economically sensitive&#34; and could experience &#34;significant multiple compression.&#34; </p> <h2><strong>Subramanian Highlights Labor Market AI Risks</strong></h2> <p>Subramanian added that a downside to AI expansion is that it may threaten jobs, which could lead to lower consumption. Other firms, like Goldman Sachs and Oppenheimer, point to AI as a tailwind for earnings growth.</p> <p>Subramanian notes that investors should have an overweight allocation to the consumer staples sector and underweight allocation to consumer discretionary stocks heading into the new year.</p> <p><strong>Stay ahead of macro events with our up-to-the-minute </strong><strong>Economic Calendar</strong><strong> — filter by impact, country, and more.</strong></p></div>

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<p>Bank of America forecasts the S&P 500 to reach 7,100 by 2026, the lowest target among Wall Street firms, indicating a 4% upside. Savita Subramanian warns of AI-related risks, including job threats and potential multiple compression. She advises overweighting consumer staples and underweighting consumer discretionary stocks. Other firms see AI as a growth driver. Investors should stay informed on macro events.</p>

- Bank of America projects the S&P 500 to reach 7,100 by 2026, representing a 4% increase from current levels, which is the lowest target among Wall Street firms.  
- Savita Subramanian, head of U.S. equity and quantitative strategy, cautions that AI-heavy companies may face significant multiple compression due to their lack of economic sensitivity.  
- She advises investors to favor consumer staples over consumer discretionary stocks as AI expansion poses risks to the labor market and could reduce consumption.  

S&P 500 Faces Street-Low 2026 Price Target from Bank of America