Yardeni Cuts S&P 500 Target Amid Rising Bond Yields
Ed Yardeni has slashed his 2026 S&P 500 target to 7,900, reversing a 500-point increase made just last month due to rising bond yields and inflationary pressures. This move aligns with warnings from Bank of America, which suggests the index is overdue for a significant correction after an unusually long stretch without a major decline.
According to GN stocks/sp500, Yardeni’s recent downgrade was executed just one month after he had previously raised his forecast to 8,400 on the back of strong corporate earnings. The report also highlights that Bank of America strategist Savita Subramanian is signaling similar caution, noting that the market is overdue for a standard pullback given that it has experienced only one such dip in 2026 compared to the historical average of three.
Source: International Business TimesPer reports in GN stocks/sp500, Yardeni attributes his caution to the recent Fed quarter-point hike to 3.75%-4.0%, which he views as a delayed response to inflation that fails to restore confidence in the bond market. The strategist further warns that persistent geopolitical tensions in Iran and upcoming midterm elections are likely to keep equity markets choppy until policy clarity emerges.
Source: The Motley FoolEd Yardeni lowered his 2026 S&P 500 forecast by 500 points, citing a 10-year Treasury yield breach of 5% and a recent Federal Reserve rate hike that limits near-term equity upside.
Source: Yahoo Finance
