Wall Street's main stock indices dropped on Friday as the US military struck Iran. Iran insisted that there were no new plans for UN inspectors to visit sites.
JPMorgan has raised its 2026 year-end target for the S&P 500, lifting it to 7,800, citing strong earnings momentum driven by the AI-led investment boom and resilient economic conditions.
However, rapidly rising equity issuance over the coming quarters, along with the prospect of tighter monetary policy, could weigh on the already stretched valuations, the bank warned.
Barclays has raised their year-end targets to 7,800, citing strength in corporate earnings. Meanwhile, it downgraded financials to "neutral" and upgrading healthcare to "neutral."
Financial markets are now pricing in only about a 30% chance of a rate hike at the Fed's July meeting, but they see a September hike as very likely, according to CME Group's Fed funds futures.
US inflation increased further in May, breaking above 4% for the first time in 3 years. Trump lately threatened to impose a "100% tariff" on the goods of any country that imposes a digital services tax on US companies.
EBC Financial analyst says, the S&P 500 hovered around a major overhead resistance zone at 50 SMA, demonstrating a wait-and-see market posture. If the level holds, the index could retest the swing low around 7,260.
Asset recap
As of market close on 26 June, among EBC major products, ServiceNow shares led gains on renewed attention on its partnerships, including expanded work with Google Cloud and HCLTech around enterprise AI agents.
Texas Instruments shares tumbled amid a global chip selloff that started in Asian memory names. The more important question is what the bears are actually arguing now that the stock is cheaper.
Chinese equities remained under heavy selling pressure. The economic recovery remains too weak to translate into sustained earnings growth, particularly for technology and consumer-oriented companies.
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