The SPDR S&P 500 ETF Trust (SPY) rebounded to the $738–745 range on June 8–9, 2026, as Wall Street strategists raised their S&P 500 targets on optimism about sustained earnings growth fueled by artificial intelligence infrastructure spending.
The rebound followed a sharp selloff on June 5, when the S&P 500 dropped 2.64% to close at 7,383.74 after a stronger-than-expected May jobs report showed the U.S. economy adding 172,000 jobs, fueling concerns about higher interest rates for longer. The index had hit a record close of 7,609.78 on June 2 before the decline.
Citigroup equity strategist Scott Chronert led the bullish charge on June 7, raising the bank’s year-end 2026 S&P 500 target to 8,100, up 400 points from 7,700. Chronert’s case rests on genuine, sustainable earnings growth rather than valuation expansion. The firm raised its S&P 500 earnings-per-share forecast to $350 for 2026, up from $320 set in December 2025, and introduced a preliminary 2027 estimate of $400.
Citi’s view centers on AI infrastructure spending feeding directly into corporate fundamentals, especially for major technology names. The bank noted that the market’s growth cluster now represents 45% of S&P 500 earnings weight, up from 15% roughly three decades ago, meaning businesses most exposed to AI carry significantly more influence than they once did.
Multiple other Wall Street firms have similarly raised their targets in recent weeks. Goldman Sachs lifted its year-end 2026 S&P 500 target to 8,000 from 7,600, citing stronger earnings expectations and a 24% increase in projected earnings per share for 2026. UBS Global Wealth Management raised its target to 7,900 from 7,500, pointing to strong consumer spending and AI tailwinds. Morgan Stanley and Deutsche Bank also set year-end targets at 8,000.
The market’s recovery on June 8–9 reflected a rebound in chip stocks and technology shares after the prior week’s semiconductor selloff, which had wiped over $1 trillion in value from the Philadelphia Semiconductor Index. Investors sought bargains in beaten-down AI and tech names, lifting the Nasdaq and broader indices.
Despite the optimism, strategists acknowledge headwinds. The S&P 500 trades at a trailing price-to-earnings ratio of about 25.6, well above historical norms, and faces renewed inflation worries, Middle East tensions, and uncertainty about Federal Reserve policy. Citi expects P/E multiples to compress as the AI cycle matures, offering a cushion if earnings growth slows.
Sources
- TheStreet — Citi’s June 7 announcement of its S&P 500 target raise to 8,100 and analyst commentary on AI-driven earnings growth.
- Reuters — Confirmation of Citi’s target raise, earnings-per-share forecasts, and reporting on June 8 market rebound in tech and chip stocks.
- MarketWatch — SPY trading range data showing the $738–745 price band on June 8–9.
- Stock Analysis — Goldman Sachs’ target raise to 8,000 and earnings outlook for 2026.
- Investopedia — UBS Global Wealth Management’s target raise to 7,900 and details on earnings and consumer spending drivers.
- Barron’s — Goldman Sachs’ year-end target of 8,000 and 16.6% projected gain for 2026.
