Veteran market strategist Ed Yardeni raised his year-end 2026 S&P 500 target from 8,250 to 8,400, making him one of Wall Street’s most bullish forecasters. The upgrade reflects stronger corporate earnings and growing confidence that the current market expansion can continue. Yardeni now sees an 80% probability that the “Roaring 2020s” scenario will remain intact. That is up from 60% previously as recent earnings growth has exceeded expectations. S&P 500 earnings rose 19% year over year in the first quarter and 46.7% in the second quarter. Yardeni raised its 2026 earnings-per-share forecast to $375 from $330 and increased its 2027 estimate to $415. The firm says earnings expectations are rising at an unusually fast pace. That supports the idea that the market’s gains are increasingly being driven by stronger profits rather than just higher valuations. Profit margins are also expected to remain elevated, with Yardeni forecasting 16.7% this year and 16.9% next year. AI-related semiconductor and hardware demand is helping lift profitability across parts of the index. Yardeni’s 8,400 target now sits above Morgan Stanley’s 8,300 forecast and well above the average Wall Street target of 7,845. The S&P 500 was recently trading around 7,728, while the SPDR S&P 500 ETF ($SPY) was up 12.6% year to date. Longer term, Yardeni still sees the S&P 500 reaching 10,000 by the end of 2029. The firm views major pullbacks as potential buying opportunities unless a severe recession triggers a lasting bear market.