Ed Yardeni is raising his view for the S&P 500 Index to a level that tops his own Street-high target for the gauge after “fabulous earnings momentum.” The new target of 8,400 reflects optimism about corporate profits and the broader economy. Yardeni, president of Yardeni Research, had previously set the highest target among Wall Street strategists at 8,200. The upgrade comes as earnings reports have exceeded expectations, with strong performance across sectors.

Yardeni noted that the earnings season has been “fabulous,” with companies beating estimates by wide margins. He also cited resilient consumer spending and a robust labor market as supporting factors. The new target implies roughly a 10% upside from current levels.

Yardeni remains bullish on the market, seeing no imminent recession risks. Other strategists have also raised their targets, but Yardeni’s stands out as the most aggressive. The S&P 500 has rallied nearly 20% in the past year, driven by tech stocks and AI optimism.

Yardeni expects the rally to broaden as earnings growth spreads beyond tech. He warned that risks remain, including geopolitical tensions and sticky inflation, but sees them as manageable. The new target reflects confidence in the earnings cycle and economic resilience.