Fear? What fear? Barclays raises S&P 500 target in Stock News 25/03/2026 Barclays retains a bullish view on the U.S. equities outlook despite a more fragile macro backdrop, raising its earnings and price target, and arguing that markets are not showing signs of panic. “Macro risks are rising (Middle East war, AI disruption, private credit stress), but the U.S. still leads on nominal growth and tech-led secular tailwinds,” strategists led by Venu Krishna said in a Tuesday note. The broker has lifted its 2026 S&P 500 EPS forecast to $321 from $305 and increased its year-end target to 7,650 from 7,400, driven chiefly by stronger earnings. “We are incrementally bullish on the profit outlook,” the strategists wrote. The upgrade reflects solid guidance from technology companies, improving industrial activity and resilient nominal growth. These factors are expected to offset weaker growth outside the U.S. and tougher consumer comparisons later in the year. Barclays noted that its new EPS estimate sits broadly in line with the Street at $322. For the year-end target hike, the strategists said the move was driven by “stronger earnings base, not re-rating.” “We’re reducing fair value multiples across the board to account for heightened uncertainty in outcomes for both macro and AI,” they added. But despite the uncertainty, Barclays notes that the U.S. economy continues to show “durable consumption” and steady labor market conditions, alongside ongoing AI-driven investment. The bank expects real GDP growth of 2.6% in 2026, with inflation remaining “sticky but well-anchored.” At the same time, risks are skewed to the downside. Strategists warned that the distribution of outcomes has shifted left, with its bear-case target at 5,900 implying a potential correction of around 15% from recent highs. Elevated energy prices and private credit stress could force the Federal Reserve into a difficult position between inflation and growth. Still, positioning suggests limited fear in markets. “Long-only funds have reduced exposure, hedge funds degrossed moderately, and systematic risk appears more symmetric,” the strategists noted. Meanwhile, options activity has shifted back toward macro concerns, but the team said there is “no panic yet,” with dry powder still available on the sidelines. “More near-term downside could be channeled via real money outflows and systematic selling pressure if sentiment worsens, and we hit an inflation vol feedback loop,” the strategists added. On sectors, Barclays upgraded Industrials to Positive, citing manufacturing momentum and AI-related demand, while lifting Materials and Energy to Neutral as supply disruptions support prices. Technology and Financials remain key pillars of earnings growth, with AI investment continuing to act as the main driver. Source: Investing.com 2026-03-25 hellenicshippingnews... window.___gcfg = {lang: 'en-US'}; (function(w, d, s) { function go(){ var js, fjs = d.getElementsByTagName(s)[0], load = function(url, id) { if (d.getElementById(id)) {return;} js = d.createElement(s); js.src = url; js.id = id; fjs.parentNode.insertBefore(js, fjs); }; load('//connect.facebook.net/en/all.js#xfbml=1', 'fbjssdk'); load('https://apis.google.com/js/plusone.js', 'gplus1js'); load('//platform.twitter.com/widgets.js', 'tweetjs'); } if (w.addEventListener) { w.addEventListener("load", go, false); } else if (w.attachEvent) { w.attachEvent("onload",go); } }(window, document, 'script')); tweet Share