Ed Yardeni, founder and president of Yardeni Research, has raised his price target for the S&P 500 [1].
The adjustment signals a bullish outlook on corporate profitability and suggests that the broader market may have more room to grow despite economic headwinds.
Speaking during a Bloomberg Television segment in June 2026, Yardeni said that recent corporate reports have created a specific trend he calls "fabulous earnings momentum," or "FEMO" [1, 2]. He said he has a case of this momentum, which has led him to revise his expectations for the index upward.
Yardeni has raised his S&P 500 target to 6,500 [3]. This target reflects his confidence in the strength of recent earnings reports and the ability of companies to maintain growth trajectories.
The analyst said that the current momentum is driving the market higher. He said the strong earnings performance is a primary catalyst for the price target increase [1, 2].
This outlook comes as investors monitor how corporate earnings respond to shifting economic conditions in the U.S. Yardeni's focus on earnings momentum suggests that fundamental company performance remains the most critical factor for index growth, rather than speculative trading or macroeconomic volatility alone.
“"I have a case of 'FEMO,' or fabulous earnings momentum."”
Yardeni's shift to a 6,500 target indicates a belief that the equity market is entering a phase where actual profit growth, rather than just multiple expansion, is driving prices. By framing the trend as 'FEMO,' he highlights a psychological shift among investors who are reacting to concrete earnings beats, which can create a self-reinforcing cycle of buying pressure.
