HSBC Boosts S&P 500 Forecast Amid Tech-Driven Surge

HSBC has increased its year-end forecast for the S&P 500 index to 6,500. The brokerage cites stronger-than-expected Q2 earnings and robust macroeconomic conditions, with technology and financial sectors fueling growth. Despite modest tariff impacts, capital expenditure driven by artificial intelligence is bolstering the market.

HSBC on September 3 announced an upward revision of its year-end forecast for the S&P 500 index, raising it to 6,500 from 6,400. The adjustment reflects a stronger than anticipated performance in Q2 earnings and a positive macroeconomic outlook, largely driven by technology and financial sectors.

The brokerage noted that the impact of tariffs remains modest in the current climate, allowing the market to maintain its momentum. This is particularly evident in the S&P 500, where resilience is being reinforced by capital expenditure investments from major technology companies.

Artificial Intelligence (AI) has been a significant factor in these investments, with AI-driven capex contributing to the ongoing market strength. As a result, HSBC remains optimistic about the index's performance through to the year's end.

(With inputs from agencies.)