UBS Lifts S&P 500 Target on Consumer Spending, AI Demand

By EC Assets · Published 22 May 2026 · Updated 28 May 2026

UBS Global Wealth Management has revised its S&P 500 year-end target upwards for 2026. This adjustment reflects strong consumer spending and continued demand for artificial intelligence (AI). The firm also increased its earnings growth forecast for global equities. The upgraded forecast by UBS Global Wealth Management cites robust earnings season results and resilient economic fundamentals. UBS has raised its global equities earnings growth forecast for 2026 from 12% to 20%. This increased projection follows a period of strong tech earnings. Raymond James Chief Investment Officer Larry Adam noted that strong tech earnings and a resilient economy are contributing to the upgraded S&P 500 year-end target. Workday, for instance, reported that its expansion deals, often driven by AI, averaged nearly 50% higher in value. UBS also raised its price target for Apple Inc. to $287. The upward revision by UBS Global Wealth Management indicates confidence in the market's underlying strength. Consumer spending and AI demand are identified as key drivers for this positive outlook. This occurs despite some concerns about consumer strength, as one retailer issued a warning regarding the "k-shaped" economy's impact on consumers. Investors will continue to monitor economic indicators, including consumer spending reports and corporate earnings related to AI. Upcoming earnings reports, such as BJ's Wholesale Club, could provide further insights into consumer behavior. This article is intended for informational purposes only. It does not constitute investment advice.