NEW YORK, June 15, 2026, 10:03 a.m. ET
- Citi lifted its S&P 500 year-end forecast for 2026 to 8,100, pointing to stronger earnings and increased AI-driven demand.
- U.S. stocks climbed Monday as a U.S.-Iran framework deal eased some of the pressure on oil markets.
- Kevin Warsh goes into his first Fed meeting as chair June 16–17, drawing investor attention.
U.S. stocks kicked off the week higher as investors weighed a slide in oil and optimism over AI. The S&P 500 was up around 1.5% early Monday. Oil dropped after the U.S. and Iran said they agreed to end the war and reopen Strait of Hormuz. Brent crude fell close to 5%, AP and Reuters reported. Investors pointed to strong AI spending as another reason for gains. AP News
Traders are turning to the Federal Reserve this week as new chair Kevin Warsh prepares for his first policy meeting since he stepped in on May 22. The FOMC will give its rate call Wednesday and hold a press conference, according to the Fed’s calendar. Reuters reported Monday the market expects the Fed to leave rates at 3.50% to 3.75%. Investors want to see how Warsh positions himself, whether he keeps to a neutral stance or signals a possible hike down the road. Federal Reserve
Citi ups S&P 500 target for 2026, citing AI, stronger profits Citi raised its S&P 500 year-end target for 2026 to 8,100 from 7,700 and boosted its EPS call for the index to $350 from $320, pointing to continued profit resilience and AI growth, Reuters reported. In a note cited by TipRanks/Yahoo Finance, Citi’s Scott Chronert wrote that “AI tailwinds are triggering a rather episodic event.” Reuters
Citi isn’t the only one with a bullish view. MarketWatch reported Citrini strategists under James van Geelen see the S&P 500 running another 10% to 15%. They say AI names might even double if Warsh doesn’t limit risk appetite. Still, they say it all depends on oil and tariffs not fueling more inflation and forcing the Fed to go tighter. MarketWatch
Wednesday could be key as Warsh faces pressure from markets looking for a break from high energy prices and more signs the Fed will hold rates. “I don’t think he will preclude cuts, but the onus will be on the data to prove that the energy shock is past us,” Christopher Hodge, chief U.S. economist at Natixis CIB Americas, told Reuters. How cautious or hawkish Warsh sounds may move stocks, with the Citi 8,100 target at stake. Reuters
