Citibank raises the full-year profit forecast for S&P 500 constituents, maintaining the year-end target of 8100 points.

Citi strategists have raised their full-year earnings expectations for S&P 500 constituents, stating that the revenue trends of companies investing in artificial intelligence "should help support the AI-impacted segments of the index." The team led by Scott Chronert has increased the S&P 500 index's earnings per share target by approximately 4% to $365. They noted that revenue growth at the index level has accelerated, while profit margins have further expanded. The strategists stated that the resulting improvement in earnings growth "looks more like a post-recession scenario." However, the team warned of concentration risk in the market, as just 20 stocks account for the majority of the analysts' upward revisions to full-year profit expectations. The strategists maintain their year-end target for the S&P 500 index at 8100 points, which implies an upside of about 5% from current levels.