Bank of America Maintains Lowest S&P 500 Target Amid Rising Pushback
Bank of America strategist Savita Subramanian has drawn significant criticism for maintaining the lowest year-end target for the S&P 500 at 7,100 — well below current levels and other Wall Street forecasts. The index currently trades near record highs but has shown weaker momentum in recent months compared to last year’s gains. While most banks have raised their targets due to strong earnings growth and AI-driven optimism, BofA remains bearish, citing concerns about the financial risks underlying the AI boom. Subramanian's call highlights growing debt among hyperscalers as they fund aggressive expansion through borrowing rather than operating cash flow. AI-related bond issuance has surged year-over-year, with spreads widening to reflect higher risk premiums demanded by investors. BofA also questions the sustainability of earnings growth and warns that rising financing costs could dampen valuations for market leaders. Her stance is increasingly isolated as Bloomberg’s survey shows an average target of 7,901 — implying modest upside from current levels compared to her forecasted 8.2% decline.
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Topics: Bank of America S&P 500 stock market forecast Wall Street strategist