1. The S&P 500's 2025 year-end target is raised to 7,000 due to sustained AI-driven earnings growth and clearer Fed rate cut expectations; 2. Anticipated Fed rate cuts have pushed 10-year Treasury yields toward 3.5-4.0%, supporting a 23x P/E ratio; 3. A 2026 S&P 500 target of 7,700 is introduced, based on a 23x multiple of projected 2027 earnings of $335.