Barclays lifted its year-end target for the S&P 500 to 7,950 from 7,800, saying technology-led earnings strength, AI investment and healthy economic activity should support corporate profits. The new target is about 3.6% above the index’s last close, while Barclays expects the benchmark to reach 8,800 by the end of 2027. In the second quarter, 86% of the 492 S&P 500 companies that had reported results beat analysts’ estimates, compared with a long-term average of 67.5%, according to LSEG data. Barclays raised its 2026 earnings-per-share forecast to $365 from $337 but remained cautious on valuations because of uncertainty over the durability of AI spending, resilient inflation, geopolitical risks and a more hawkish interest-rate outlook. The index is up 12.1% this year. Barclays also downgraded utilities to neutral from positive, citing regulatory uncertainty involving wildfire liability reform and opposition to data-center permitting in some U.S. states. HSBC separately raised its year-end target, while UBS Global Research, Goldman Sachs and Citigroup forecast an S&P 500 close at or above 8,000.