Wall Street analyst optimism on the S&P 500 reached a record high this week, with nearly 60% of the index's stocks now rated Buy, according to Charlie Bilello, Chief Market Strategist at Creative Planning. JPMorgan raised its 2026 year-end target for the S&P 500 to 7,800 from 7,200 this week, while Barclays and Stifel also lifted their targets to 7,800, citing the benchmark's record-setting rally. Market strategists warned that the heightened optimism means positive surprises are already priced into current levels, with Bilello stating that when everyone expects good news, there is less room for upside. The S&P 500 has climbed more than 7% so far this year and hit a record high of 7,620.90 earlier this month.
Wall Street Analysts Assign Record 60% Buy Ratings on S&P 500 Stocks
Charlie Bilello said in a post on X on Thursday that nearly 60% of S&P 500 stocks are now rated Buy by analysts, the highest level on record. According to Koyfin data, a majority of analysts covering the S&P 500's five largest constituents — Nvidia Corp., Apple Inc., Microsoft Corp., Amazon.com Inc., and Alphabet Inc. — currently have a Buy or higher rating on the shares.
JPMorgan, Barclays, and Stifel Raise S&P 500 Targets to 7,800
Earlier this week, JPMorgan raised its 2026 year-end target for the S&P 500 to 7,800 from 7,200, implying roughly a 6% upside from current levels. According to a CNBC report citing a note from the bank, strategist Dubravko Lakos-Bujas said easing geopolitical tensions between the U.S. and Iran have strengthened the case for a "Blue Sky" scenario for U.S. equities. Barclays and Stifel also raised their year-end targets for the S&P 500 index to 7,800 this week, citing strength in corporate earnings, according to a Reuters report.
Strategists Warn Upside Already Priced Into Current Levels
Bilello stated in the post that the higher targets and growing optimism mean the upside is already priced in. "When everyone is expecting good news, there's less room for positive surprises," he said. Jeffrey Moore, co-founder of Global Smart, responded to the post on X, saying, "60% Buys, 5% Sells, highest since 2010. Everyone is already bullish. That does not mean crash tomorrow, it means good news is priced in, and the surprise risk is down." JPMorgan's Lakos-Bujas noted that the S&P 500's climb going forward would "likely be non-linear, as the market will need to clear various hurdles." He added that strong back-to-back earnings have reset the bar higher heading into the 2Q season, making it more difficult for companies to significantly surprise to the upside on both earnings and capex.
S&P 500 ETFs Decline Amid Technology Stock Weakness
At the time of writing, the SPDR S&P 500 ETF (SPY), which tracks the S&P 500 index, was down 0.83% amid sustained weakness in technology stocks. The Vanguard S&P 500 ETF (VOO) was down nearly 1%, and the iShares Core S&P 500 ETF (IVV) fell 0.68%. Retail sentiment around SPY was in the "extremely bearish" territory at the time of writing, while VOO and IVV were trending in the "bullish" territory.
FAQ
What percentage of S&P 500 stocks are rated Buy by analysts?
Nearly 60% of S&P 500 stocks are now rated Buy by analysts, the highest level on record according to Charlie Bilello, Chief Market Strategist at Creative Planning.
What is JPMorgan's year-end target for the S&P 500?
JPMorgan raised its 2026 year-end target for the S&P 500 to 7,800 from 7,200 earlier this week, implying roughly a 6% upside from current levels.
Why do strategists say the upside is already priced in?
Strategists including Charlie Bilello and Jeffrey Moore stated that when 60% of stocks are rated Buy and multiple firms have raised targets, positive surprises are already reflected in current prices, leaving less room for further gains.
