Barclays lifts S&P 500 year-end target to 6,050

(Reuters) - Barclays raised its year-end price target for the S&P 500 index to 6,050 from 5,900 on Wednesday, citing easing trade uncertainty and expectations of normalized earnings growth in 2026.

This follows forecast increases by Goldman Sachs and UBS Global Wealth Management in May, and a similar move by RBC Capital Markets and Deutsche Bank this week.

The new target is an upside of about 1.32% to the index's last close of 5,970.37 points.

In May, the S&P 500 logged its best monthly performance since November 2023, rising 6.2%, after U.S. President Donald Trump moderated his stance on tariffs, robust corporate earnings, and data showing inflation cooling which helped markets bounce back from April's downturn.

The British brokerage also introduced its 2026 earnings per share forecast at $285 and 2026 year-end target of 6,700 for the benchmark index.

"After tariff headwinds are absorbed throughout the remaining quarters of FY25, we expect that 2026 will return to a more normalized pace of earnings growth," Barclays strategists led by Venu Krishna said in a note.

Tariffs next year are expected to have no additional direct impact compared to this year, though secondary effects on growth and inflation may extend into 2026, the brokerage added.

Barclays maintained its 2025 earnings per share forecast at $262, despite ongoing tariff pressures.

(Reporting by Rashika Singh and Joel Jose in Bengaluru; Editing by Eileen Soreng)