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#SP500Nears8000 The S&P 500 briefly crossed 7,800 on August 13, setting another record as investors responded positively to softer producer inflation and strong corporate earnings. Citi has raised its 2026 earnings-per-share forecast from $350 to $365 while maintaining an 8,100 year-end target. AI-related growth and expectations of less aggressive monetary policy remain the market’s main engines. Reaching 8,000 now looks possible, but the final stretch could be more difficult. Valuations already assume continued earnings growth, heavy AI investment and relatively stable interest rates. If companies fail to convert AI spending into revenue, or if inflation forces yields higher, expensive stocks could react sharply. I remain constructive on the trend, but investors should distinguish between strong earnings growth and momentum created mainly by expanding valuations.