HSBC has lifted its year-end S&P 500 forecast to 6,500 from 6,400, its second upgrade in less than a month, citing stronger-than-expected second-quarter earnings and only a modest drag from tariffs.

• “We revise our S&P 500 year-end target to 6500 after incorporating better-than-expected Q2 results”

The new target implies about 1.3% upside from the index’s last close of 6,415.

HSBC’s head of Americas equity strategy, said momentum remains strongest in technology and financials, while company guidance points to only limited tariff effects. HSBC kept a bull-case scenario of 7,000 for the index and a bear case of 5,700 if trade frictions weigh more heavily on margins.

The bank also expects the Federal Reserve to cut rates in September but sees a shallower easing cycle than markets currently anticipate.