By Bank of America upgraded its year-end S&P 500 target to 6,300, citing the market’s strong performance in 2025. However, the firm emphasized that valuations are now at the upper end of historical norms, and muted returns are likely unless corporate earnings accelerate meaningfully.
According to BofA analysts, sectors beyond just mega-cap tech need to contribute to returns, as current highs are narrowly driven and risk prone to a sharp correction. Macro risks—like inflation surprises or tighter Fed policy—could also pressure stretched valuations.
Overall, BofA retains a cautiously optimistic tone, balancing short-term enthusiasm with medium-term prudence.