The S&P 500 Index (SPX) keeps confidently trending upward, even setting a new all-time high this Tuesday by climbing above the 7,550 level. The asset has already left behind 8 consecutive positive weeks—the longest successful streak since late 2023—and is now preparing to continue this rally. Investors are buying up any dip in the blink of an eye, demonstrating their unwavering confidence in the long-term transformation of the economy under the influence of artificial intelligence (AI) technologies.
The macroeconomic backdrop is also working in the index’s favor. Let’s take it piece by piece, starting with a decline in crude prices below $100 per barrel due to progress in the US-Iran peace talks. These recent developments have also eased inflationary pressures, giving the Federal Reserve (Fed) more room to adopt a less hawkish stance. A robust labor market, resilient consumer demand, and record corporate earnings create a perfect environment for SPX to rally further. Major analytical agencies raise their late-2026 targets to the 7,900–8,000 range, arguing that current levels are not yet overvalued given real income growth.
So, both fundamental and technical conditions promise the index’s continued rise in the near term. Market dynamics are also on the asset’s side. The next target could be 7,700—a pretty achievable goal if the positive background persists.
The ultimate recommendation is to buy SPX at the current price, aiming for 7,700 within a couple of weeks. To manage risks in case the S&P 500 index moves against us, place a Stop Loss order slightly below the resistance level, at around 7,425.
This content is for informational purposes only and is not intended to be investing advice.
