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Analyst Raises S&P 500 Target to 7,500 – Assuming These Things Happen
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Analyst Raises S&P 500 Target to 7,500 – Assuming These Things Happen

As election results unfold, it appears that Republicans will have control of both the Senate and the House. If so, they could raise the corporate tax rate to 15%.

That would bode well for the S&P 500, according to Jay Hatfield, managing director at Infrastructure Capital Advisors, who raised his 2026 target for the index to 7,500.

This would mean an EPS estimate of 328 and a PE of 23x for the S&P. To justify this, Hatfield said the 10-year Treasury rate is expected to drop to 3-4% and inflation is expected to remain near 2%.

While inflation is already slowing, Hatfield said inflation could remain low as long as money supply growth and energy prices remain under control. And even if customs duties would increase the prices of certain products, this one-off increase may not be enough to trigger an inflationary spiral.