Capital Economics: The "AI train" will get back on track, maintaining the S&P 500 year-end target at 8,250 points

Glonghui, July 29 — Capital Economics pointed out that the recent sell-off of AI-related tech giants was mainly driven by market panic rather than a deterioration in fundamentals. The institution still expects the "AI train" to get back on track and maintains its S&P 500 target of 8,250 points by the end of 2026. However, in the long term, the institution believes that current market expectations for corporate earnings are overly optimistic and expects these forecasts to be revised down, predicting that the S&P 500 will fall back to 6,500 points by the end of 2027.