UBS projects the S&P 500 will reach 8,100 by end of 2026 and 8,900 by end of 2027, driven by approximately 20% earnings-per-share growth for full-year 2026. All 11 sectors of the index are expected to post profit increases with a median growth of 12%, with semiconductors leading the charge at 92% earnings growth in 2026 followed by an additional 40% in 2027. Globally, UBS sees roughly 10% upside for the MSCI All Country World Index over the next 12 months. Beyond 2027, visibility narrows due to uncertainty surrounding the return on investment for AI-related capital expenditures.
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