S&P 500 Bulls Still Hold Strong Amid Rising Oil Prices and Higher Yields

Despite rising oil prices and higher long-term yields, most Wall Street analysts remain bullish on the S&P 500's uptick this year. Brent crude futures expiring in November have jumped nearly 2.4% to trade at $106.97 a barrel, while the U.S. 10-year Treasury yield was trading at 4.963% at the time of writing, hitting 2007 levels.

Citi reportedly warned that its year-end target for the S&P 500 may be stretched as macroeconomic factors have changed over the past few weeks. Strategist Scott Chronert said the bank's current 8,100 target for the S&P 500 by the end of 2026 looks 'on the aggressive side' due to rising oil prices and higher bond yields.

However, many other firms have reiterated or hiked their price targets on the benchmark index. HSBC raised its year-end S&P 500 target to 8,100 from 7,650, citing stronger corporate earnings, sustained AI investment, and a resilient U.S. economy. Barclays also raised its 2026 S&P 500 target to 7,950 from 7,800, citing stronger-than-expected second-quarter earnings.