Wells Fargo predicts a bullish outlook for the S&P 500 in 2026, targeting 7,400-7,600, an 11% gain. Factors include consumer spending, AI investment, and deregulation. The index closed at 6,840. Other forecasts range from 7,100 to 8,000, with the S&P 500 up 16% this year.

Wells Fargo cites lower interest rates, AI investments, and larger tax refunds from the OBBBA as key drivers for stock prices in 2026. Consumers are expected to receive significant tax refunds in the spring, boosting spending. Corporate America could benefit from increased capex spending and factory builds.

The Federal Reserve’s interest rate cuts with the S&P 500 near record highs historically lead to positive outcomes. When rates were lowered with the index close to a record high, the S&P 500 was higher 100% of the time 12 months later. Wells Fargo’s positive outlook is supported by these trends.

Read more at Yahoo Finance: Wells Fargo sees S&P 500 clocking double-digit gain in 2026 as AI boosts profits, tax refunds lift spending