Morgan Stanley has revised its forecast for the S&P 500, predicting the index will reach 6,500 by the second quarter of 2026. This optimistic outlook is driven by expectations of market momentum picking up later in the year, supported by potential Federal Reserve rate cuts, a weaker U.S. dollar, and easing regulatory conditions. The bank has upgraded U.S. equities to Overweight, following a 19% rally from April lows. UBS Global Wealth Management has also raised its year-end target for the S&P 500 to 6,000, with a further target set at 6,400 for June 2026. This adjustment follows a strong performance in the first quarter, although UBS anticipates slower earnings growth in the coming quarters. Capital Economics has similarly lifted its target for the S&P 500, forecasting the index to rise to 7,000 by the end of 2026. These projections reflect a growing confidence in the global economic backdrop and a bullish stance on U.S. equities.