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S&P 500 target revealed: HSBC predicts stock market index will hit 7,500 in 2026 - here's how AI investments are driving the rally

US stock market prediction 2026: Wall Street anticipates a continued AI investment surge, with HSBC forecasting the S&P 500 to hit 7,500 by December 2026. This optimism stems from an intensifying AI arms race, though consumer spending is expected to remain uneven due to sticky inflation and a wobbly labor market, creating a K-shaped economy.