---
title: "S&P 500 Faces Street-Low 2026 Price Target from Bank of America"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/269746658.md"
description: "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."
datetime: "2025-12-15T16:08:04.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/269746658.md)
  - [en](https://longbridge.com/en/news/269746658.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/269746658.md)
---

> Supported Languages: [简体中文](https://longbridge.com/zh-CN/news/269746658.md) | [繁體中文](https://longbridge.com/zh-HK/news/269746658.md)


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

Bank of America expects the S&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.

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Head of U.S. equity and quantitative strategy Savita Subramanian warned in an appearance on _CNBC's_ "Squawk Box" that AI-related companies with heavy weights in the benchmark index aren't "economically sensitive" and could experience "significant multiple compression."

## **Subramanian Highlights Labor Market AI Risks**

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.

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.

**Stay ahead of macro events with our up-to-the-minute** **Economic Calendar** **— filter by impact, country, and more.**

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- [Bank of America Corporation (BAC.US)](https://longbridge.com/en/quote/BAC.US.md)
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- [Costco Wholesale Corporation (COST.US)](https://longbridge.com/en/quote/COST.US.md)
- [The Kroger Co. (KR.US)](https://longbridge.com/en/quote/KR.US.md)

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