BofA's Savita Subramanian says the S&P 500 will rise to 7,100 in 2026, the most bearish forecast on the Street thus far
The head of U.S. equity and quantitative strategy's target implies just a 4% rise from current levels.
TL;DR
- Bank of America Securities' Savita Subramanian forecasts the S&P 500 to end 2026 at 7,100, a 4% rise from current levels.
- Subramanian expects significant multiple compression, citing the market's current reliance on AI stocks.
- She believes AI's potential impact on the labor market could negatively affect consumer spending in 2026.
- This outlook is more bearish than other Wall Street strategists who anticipate AI to continue driving market gains.
- Subramanian recommends overweighting consumer staples and underweighting consumer discretionary stocks.