June 8 (Reuters) - Top brokerages expect the benchmark S&P 500 index to extend its rally in 2026, even as the months-long Middle East conflict disrupts global energy flows and drives inflation higher.

Strategists at major investment banks expect AI momentum and strong corporate earnings to offset the conflict's short-term economic impact. However, they warn that persistently higher oil prices could increase recession risks.

Citigroup became the latest brokerage to raise its index target, adding to a wave of bullish brokerage calls.

Following are forecasts from some top brokerages on economic growth and the performance of U.S. stocks in 2026:

Forecasts for stocks:

Brokerage 2026 S&P 500 index target

BofA Global Research 7,100

Societe Generale 7,300

UBS Global Research 7,500

Jefferies 7,500

Canaccord Genuity 7,500

BNP Paribas 7,500

J.P. Morgan 7,600

Barclays 7,650

HSBC 7,650

Evercore ISI 7,750

Seaport Research Partners 7,800

RBC Capital Markets 7,900

UBS Global Wealth Management 7,900

Deutsche Bank 8,000

Goldman Sachs 8,000

Morgan Stanley 8,000

Oppenheimer Asset Management 8,100

Citigroup 8,100

Wells Fargo Investment 7,400-7,600

Institute

Real GDP Growth:

Brokerage GLOBAL U.S. EURO AREA UK

Citigroup 2.7% 2.3% 0.9% 0.8%

Goldman Sachs 2.4% 2.0% 0.7% 1.2%

Morgan Stanley 3.2% 2.2% 0.5% 0.9%

Barclays 3.1% 2.6% 0.8% 0.7%

Wells Fargo 2.6% 2.1% 0.6% 0.7%

UBS Global Wealth 3.1% 1.7% 1.1% 1.1%

Management

Deutsche Bank 3.3% 2.5% 0.5% 1.3%

HSBC 2.5% 2.1% 0.7% 0.8%

J.P. Morgan 2.5% 2.0% 0.7% 1.2%

BofA Global 3.1% 2.2% 0.7% 1.0%

Research

UBS Global 3.0% 2.1% 0.8% 1.0%

Research

* UBS Global Research and UBS Global Wealth Management are distinct, independent divisions in UBS Group

* Wells Fargo Investment Institute is a wholly owned subsidiary of Wells Fargo Bank

(Compiled by the Broker Research team in Bengaluru; Editing by Sriraj Kalluvila, Tasim Zahid and Mrigank Dhaniwala)