LIVE MARKETS-Ned Davis Research sees S&P 500 at 7,100 by end 2026

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NED DAVIS RESEARCH SEES S&P 500 AT 7,100 BY END 2026

Ned Davis Research's chief U.S. strategist, Ed Clissold, is forecasting the S&P 500 .SPX will end next year at 7,100, which is about 4% above where the index is now.

The forecast is below the 7,490 median year-end 2026 S&P 500 target in a new Reuters poll of equity strategists.

Clissold and other strategists at Ned Davis Research wrote in their recent outlook note that risks include slowing earnings per share growth, high valuations, a less equity-friendly Federal Reserve and an extended bull market.

They wrote that growth areas could underperform during pullbacks, and that the "best opportunity for small-caps could come after the next recession."

They said to "look for datacenter spending to accelerate," and added: "Datacenter Electrification remains our favorite theme because spending will increase here in order to remove a bottleneck. Health
Care is ripe for AI productivity."

(Caroline Valetkevitch)

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