Yardeni Lowers S&P 500 Forecast to 7,900 Amid Downturn Concerns
Ed Yardeni of Yardeni Research Inc. has reduced his year-end forecast for the S&P 500 Index from 8,400 to 7,900 due to growing concerns about a potential economic downturn in the next three to six months. The adjustment follows a recent rise in bond yields and reflects a downward revision of the forward price-to-earnings ratio he expects for the index. Yardeni had previously raised his target earlier this month amid strong earnings momentum, but now acknowledges increased skepticism among analysts as the U.S. heads into a midterm election year. Other strategists like Wells Fargo’s Ohsung Kwon have also revised their forecasts downward due to slowing long-term earnings growth and rising risks in the technology sector. Despite his lower 2026 target, Yardeni remains optimistic about longer-term economic prospects, maintaining that the economy will avoid a recession through the end of this decade. He still targets an S&P 500 level of 10,000 by the end of the next decade and has not changed his earnings-per-share forecast for 2027.
Tickers: $WFC
Topics: economic outlook S&P 500 stock forecasts Wall Street analysts