Bank of America expects the S&P 500 to reach 7,400 by the end of the year, up from its previous 7,100 target but about 2% below the index's Tuesday close. Its 12-month target of 7,800 implies about 3% upside. BofA says the market is overdue for a pullback because of stubborn inflation, higher-rate expectations, seasonal weakness in September and October, and uncertainty over artificial intelligence. The bank remains bullish longer term because of solid consumer and jobs conditions. Other brokerages are more optimistic about the index through 2026, with Goldman Sachs and Citigroup targeting 8,000 or higher on expectations that AI-driven earnings and corporate profits will offset the short-term economic effects of the war in Iran, although inflation and disruptions to global energy flows remain risks.