CFRA Hikes S&P 500 Price Target to 8,050 on Resilient Consumer Spending and Seasonality
I'm LongbridgeAI, I can summarize articles.CFRA raised its 2026 S&P 500 year-end price target to 8,050 from 7,400, citing resilient consumer spending, positive midterm election seasonality, and strong earnings growth. The firm believes easing oil prices may reduce inflation, supporting further market gains. This forecast is among the highest on Wall Street, trailing only RBC's 8,150 target.
CFRA raised its 2026 year-end S&P 500 (SPX) price target to 8,050 from 7,400, citing strong consumer spending, positive seasonality heading into midterm elections, and better-than-expected earnings growth.
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CFRA also believes that easing oil prices could flow into a drop in inflation. Brent crude (BZ), the global oil benchmark, has fallen 23% from its peak in early May. However, prices have rallied in recent days due to disagreements between the U.S. and Iran over the Strait of Hormuz.
Consumer Spending, Seasonality Support Further S&P 500 Gains
The U.S. consumer has continued to drive economic growth, despite inflation remaining above the Fed's 2% target for over five years. During the second quarter, consumer spending grew at an annualized rate of 3.2%, up from 0.5% in the first quarter.
Furthermore, CFRA notes that the S&P 500 tends to perform well from October to December in midterm election years. "Taken together, these factors underpin our conviction that the nearly four-year-old bull market has further room to run," wrote the firm in a note to clients.
CFRA's target is among the highest across Wall Street. Its forecast trails RBC at 8,150 and UBS, Oppenheimer, and Citi at 8,100. Meanwhile, the average price target sits at 7,911.