Citigroup Lifts S&P 500 Year-End Goal to 6,600 on Tax-Cut Outlook

Citigroup strategists led by Scott Chronert raised their year-end target for the S&P 500 Index to 6,600 from 6,300, implying roughly a 3% gain from last Friday’s close. Chronert said the prospective corporate tax cuts embedded in the “One Big Beautiful Bill” should more than offset the drag from the recently enacted 145% tariff on Chinese imports, underpinning equity valuations. Alongside the higher index target, Citi lifted its earnings-per-share forecasts for S&P 500 companies to $272 for 2025 and $308 for 2026, reflecting expectations for resilient profit growth despite trade frictions. UBS also updated its outlook, with strategist Bhanu Baweja lifting the S&P 500 projection to 6,100 for the end of 2025 and introducing a 2026 target of 6,800. The bank expects the benchmark to dip next year before recovering, underscoring differing views on how policy and trade developments will shape U.S. equity performance.