• Ed Yardeni raises S&P 500 target to 8,400 from 8,250, citing strong earnings momentum.
  • Forecasts 2026 S&P 500 earnings at $375, up from $330, as companies beat expectations.
  • Maintains 10,000 target for 2029, sees pullbacks as buying opportunities.

Ed Yardeni, president of Yardeni Research, has lifted his year-end S&P 500 target to 8,400 from 8,250, driven by what he calls “fabulous earnings momentum.” In a note to clients, Yardeni revised his 2026 earnings estimate upward to $375 per share from $330, as a broad swath of companies continue to surpass forecasts.

“The earnings-driven rally is intact, and we see no signs of a recession on the horizon,” Yardeni said. He puts the probability of a recession or bear market at just 20%, suggesting any significant pullback would be a buying opportunity.

Yardeni’s updated target aligns with a growing chorus of strategists who have raised their outlooks on the back of robust corporate earnings and a resilient economy. Goldman Sachs and others have also lifted their year-end targets, citing similar fundamentals.

While policy headlines often dominate market narratives, Yardeni’s focus remains on earnings growth and macroeconomic resilience. He continues to see a path to 10,000 for the S&P 500 by 2029, underpinned by sustained profit expansion.

“The market’s upward trajectory is supported by strong fundamentals, and we expect that to continue,” Yardeni added. He acknowledged that volatility could arise, but emphasized that dips should be viewed as entry points for investors.

Yardeni’s bullish stance comes as companies across sectors report better-than-expected results, with technology and financials leading the charge. The revised earnings estimate reflects a broader optimism about corporate America’s ability to navigate a complex economic environment.

Critics might argue that such lofty targets are overly optimistic, but Yardeni remains steadfast. “The data supports our view, and we’re sticking with it,” he said.

For now, investors seem to share his confidence, with futures pointing higher following the announcement. As always, the market will be watching for any signs of a slowdown, but Yardeni’s message is clear: stay invested, and buy the dips.