HSBC lifts S&P 500 year-end target to 7,650 on earnings

HSBC raised its year-end target for the S&P 500 to 7,650 from 7,500 on Monday. The revision follows resilient earnings growth and record highs in the United States equity markets. Investors are tracking whether AI-driven momentum can offset inflation risks from energy costs.

### AI Optimism Offsets Energy Inflation Concerns The new target implies 3.4% upside from the Friday close of 7,398.93 points. High oil prices related to the Middle East conflict have fueled inflation fears, but strong AI investment sentiment remains the dominant market driver. The S&P 500 recently capped April with its largest monthly percentage gain since November 2020.