Another Historical Run Incoming? Bank of America Is Forecasting S&P 500 To Hit 7000 By 2026

As the stock market continues to refresh historical highs, Bank of America's technical strategist Stephen Suttmeier believes that, from a long-term technical analysis perspective, the current U.S. stock bull market could continue until around 2030 and is expected to rise to 7000 points before the end of 2026.

Suttmeier wrote in his latest report that the U.S. stock market's long-term bull market is about to enter its 11th year and still has enough momentum to promote further gains.

The current bull market officially began in April 2013, as the stock market has since exceeded the peaks set in 2007 and 2000, followed by a bumpy upward trajectory.

This long-term upward trend was reconfirmed last December when the S&P 500 index broke through around 4600 points, representing a bullish cup-with-handle pattern. Since then, the index has climbed 14%, reaching all-time highs.

Bank of America predicts in the report that the S&P 500's gain should continue, implying that the index could rise another 34% to above 7000 points by the end of 2026. As of Monday's close this week, the S&P 500 index ended at 5218.19 points.

The SPX has rallied 46% from its October 2022 low, said Suttmeier, The median rally from a big low of 106% lasts approximately four years, suggesting that SPX 7000 is not ruled out into late 2026.

As for when the long-term bull market will stop, Suttmeier thinks there is no end in sight at least until the end of 2030.

Suttmeier said: The secular bull markets from 1950-1966 and 1980-2000 lasted 16 and 20 years, respectively, which means that the current secular bull market is middle-aged and can extend until 2029 to 2033.

The report states that the S&P 500's breakout above the 4600 point mark in December last year signified that the U.S. stock market would rise to two recent price targets: 5200 points and 5600 points.

Currently, the 5200 point goal has been achieved, which means U.S. stocks' next short-term target is a further 7% gain to roundabout 5600 points.

Furthermore, Suttmeier emphasized that when the S&P 500 broke through the record high of about 4800 points in January this year, it predicted another price target at 6150 points. This means there is still an 18% upside potential for U.S. stocks.

This prediction is also aligned with the patterns related to the so-called presidential cycle—usually, the fourth year of a U.S. president's first term brings upward momentum to the stock market.

On the downside support, Suttmeier said investors should pay attention to support levels at 4800 and 4600 points, meaning that the index could fall by as much as 12% from current levels.