Jefferies Sets S&P 500 Price Target of 9,000
Jefferies projects the S&P 500 will reach 9,000 by late 2027, driven by AI earnings despite rising interest rates and geopolitical risks.
The Jefferies Group has set a price target of 9,000 for the S&P 500 by the end of 2027, projecting earnings per share of $450 at a 20x multiple. This forecast aligns with a FactSet analyst target of 9,261, with both projections fueled by record net margins and strong earnings from companies exposed to artificial intelligence. Goldman Sachs Private Wealth Management estimates that AI infrastructure accounts for half of all S&P 500 earnings growth across 2026 and 2027.
Analysts warn that this bullish outlook leaves little room for error, as it requires stable margins and sustained earnings growth. Significant risks include potential AI capital expenditure depreciation charges and higher energy costs resulting from the war in Iran, which has pushed Brent crude prices toward $98.
Monetary policy remains a primary headwind. The Federal Open Market Committee raised interest rates to a target range of 3.75%-4.00% on September 16, with no cuts projected until 2028. While the market trend remains positive, the gap between current estimates and long-term growth trends suggests a risk of mean reversion.
