The S&P 500 crossed 7,600 for the first time in June 2026, marking another historic milestone as investors navigate a year of strong earnings growth and artificial intelligence-driven gains. The question many face now is whether to invest in index funds at such elevated levels.
The index gained 9.6% in the first half of 2026, or 10.2% including dividends, according to Portus Wealth Advisors’ mid-year review. Behind this climb lies a powerful earnings engine: first-quarter S&P 500 profits grew roughly 28% year over year on revenue growth near 12%, with about 85% of companies beating estimates, well above the five-year average of 78%.
The rally has been broad-based beyond mega-cap tech. Smaller companies surged with the Russell 2000 posting its best first-half start since 1991, up roughly 22%. Energy stocks gained from geopolitical tensions that spiked oil prices, while chip-related companies and equipment suppliers benefited from the ongoing artificial intelligence build-out that has become the economy’s biggest growth engine.
Goldman Sachs responded to the momentum by raising its year-end S&P 500 target to 8,000 in May, up from 7,600, projecting additional upside despite the index already hitting that former target. This forecast reflects confidence in continued earnings expansion and the breadth of the rally across company sizes and sectors.
For investors concerned about buying at market peaks, financial advisors point to dollar-cost averaging—investing a fixed amount at regular intervals regardless of market conditions—as a proven strategy. Evergreen Wealth Advisors notes that dollar-cost averaging simply means investing the same amount on a regular schedule, which removes the pressure to time the market perfectly. Portus Wealth Advisors emphasized that portfolios positioned across company sizes and geographies were built to weather exactly this kind of year, rewarding patience and diversification.
The economy has provided a steady backdrop for gains. First-quarter GDP grew at a 2.1% annualized pace, unemployment sat at 4.2% in June, and employers added more than 100,000 jobs a month for three straight months through May. The inflation picture remains the main watch point: headline CPI jumped from 2.4% in February to 4.2% in May due to oil-driven transport costs, though core inflation rose only modestly to 2.9%, suggesting the spike may be temporary.
Sources
- Portus Wealth Advisors — S&P 500 first-half performance, earnings growth, diversification strategy, and economic data.
- Goldman Sachs — Year-end 2026 S&P 500 forecast raised to 8,000.
- Evergreen Wealth Advisors — Dollar-cost averaging strategy explanation.
- Investing.com — Confirmation of S&P 500 closing above 7,600 for the first time.
