News Summary

• HSBC expects the S&P 500 to hit 7,500 by next December.
• Powering the growth, which amounts to a roughly 12% gain from current levels, is an AI investment boom.
• The firm expects 2026 to continue being defined by a pinched consumer and the various elements that uphold the K-shaped economy.
• The forecast sidesteps the question of an AI bubble — the authors' colleagues have already argued that we are not in one — and instead posits that rallies can last for some time.