Ed Yardeni Cuts S&P 500 Target to 7,900 as AI Return Doubts Rattle Stocks
Updated
Updated · NBC News · Oct 15
Ed Yardeni Cuts S&P 500 Target to 7,900 as AI Return Doubts Rattle Stocks
3 articles · Updated · NBC News · Oct 15
Summary
Yardeni lowered his 2026 year-end S&P 500 target by 500 points to 7,900, citing rising caution on the AI trade alongside persistent inflation and higher-rate worries.
U.S. stocks have already started to wobble: the S&P 500 closed 1% below last week’s record and the Nasdaq sat more than 3% under its recent peak.
Anthropic’s slowing revenue growth, fears that Chinese memory-chip producers could flood the market, and selling in bonds tied to AI data centers have sharpened concerns that AI spending may not earn enough to justify trillions invested.
That matters beyond tech because nearly half of U.S. economic growth this year has been tied to tech-related spending, which has also supported consumer demand through stock-market gains and a wealth effect.
Fresh pressure is building as business inflation hit its highest rate since December 2022, adding to risks from elevated energy prices, slow job growth and any prolonged equity selloff.