HSBC: Assuming the Federal Reserve cuts interest rates twice next year, the forecasted target for the S&P 500 index at the end of next year is 7500 points.

J.P. Morgan released a "2026 U.S. Stock Market Outlook" report, pointing out that the investment focus in 2026 will mainly revolve around several core themes, including long-term growth brought about by artificial intelligence and data center expansion, tailwinds from infrastructure construction and electrification, and the trend of enterprises continuously pursuing high-quality growth and operational resilience. The report suggests that investors should pay special attention to companies with strong pricing power, long-term growth momentum, solid balance sheets, and those that can benefit from structural trends such as data center expansion and infrastructure investment. The bank predicts that the S&P 500 index target at the end of 2026 will be 7500 points, and expects profits to remain at a growth rate higher than trend for at least the next two years. This outlook is based on the assumption of J.P. Morgan's economic department that the Federal Reserve will cut interest rates twice more, followed by entering a long-term policy pause. However, if improvements in inflation lead to further interest rate cuts by the Federal Reserve, the S&P 500 index could potentially surpass 8000 points.