Barclays “expects the S&P 500 to reach 5,600 this year and 6,500 next year”

(Edaily reporter Lee Joo-young) Barclays Bank raised its target for the S&P 500 index this year to 5,600 points.

Barclays strategist Venu Krishna announced in a report on the 23rd local time that the figure would be raised from 5300 to 5600. He said, “The strong performance of major companies will offset other downside risks in the market.”

In particular, he predicted that “large technology stocks will continue to perform well in the second half of the year, just as they did in the first half” and that “artificial intelligence can enhance companies’ profits.”

Recently, large-cap technology stocks have seen a correction due to valuation burdens and a cyclical market for small-cap stocks.

However, strategist Krishna commented on this, saying, “These sectors may adjust again, but valuations may be reset as the momentum of the earnings season increases.”

He expects that, excluding technology stocks, the utilities sector will “post earnings per share (EPS) growth above the S&P 500 average.”

In addition, he set his S&P 500 target for next year at 6,500 points and predicted that it could rise another 16.8% from the previous trading day’s closing price.