UBS strategist sees strong US earnings boosting stocks before 2027 uncertainty

UBS is making one of the more aggressive calls on Wall Street right now. The bank’s US equity strategist Keith Parker projects the S&P 500 will hit 8,100 by the end of 2026 and climb to 8,900 by the end of 2027, powered by what the firm describes as a corporate earnings engine firing on all cylinders. The catch is that the visibility gets murky beyond 2027. AI-related capital expenditures, the very spending fueling much of this growth, could start squeezing margins once companies lose clarity on their return on investment. The numbers behind the bullishness UBS Global Wealth Management’s Chief Investment Office released research on July 17 laying out the case in detail. The firm expects approximately 28% earnings-per-share growth for the S&P 500 in Q2 2026, with full-year 2026 growth projected at around 20%. All 11 sectors of the S&P 500 are expected to post profit increases, with a median profit growth of roughly 12% across the board. Semiconductors are doing most of the heavy lifting. UBS forecasts the Philadelphia Semiconductor Index will deliver a staggering 92% earnings growth in 2026, followed by an additional 40% in 2027. Chips alone are expected to provide over ...