Updated
Updated · Yahoo Finance · Aug 18
Ed Yardeni Lifts 2026 S&P 500 Target to 8,400 as Earnings Jump More Than 50%
Updated
Updated · Yahoo Finance · Aug 18

Ed Yardeni Lifts 2026 S&P 500 Target to 8,400 as Earnings Jump More Than 50%

3 articles · Updated · Yahoo Finance · Aug 18

Summary

  • 8,400 is Yardeni’s new 2026 target for the S&P 500, about 8% above the index’s roughly 7,756 level on Aug. 17 after a 12.3% gain this year.
  • More than 50% second-quarter earnings growth is the main driver: with 88% of companies reported, 76% beat EPS estimates, and Yardeni says that momentum could push 2027 S&P 500 EPS above $400.
  • Valuations are not yet far above history by his measure, with the S&P 500 trading at 20 times forward earnings on Aug. 7 versus a 10-year average of 19.
  • Iran war risk remains the main obstacle, because continued threats around the Strait of Hormuz could keep oil and gas prices high, squeeze consumers and eventually slow earnings growth.

Insights

If the Iran conflict unexpectedly escalates, could the S&P 500's earnings momentum instantly collapse before reaching 8,400?
Is the booming AI sector masking hidden weaknesses in the broader economy that could derail Yardeni's bullish 2026 forecast?
Could sticky inflation from global energy shocks force the Fed to crush the very economic growth driving this stock rally?