In a bold projection that's sure to grab attention, veteran Wall Street strategist Ed Yardeni is calling for the S&P 500 index to soar to 10,000 by the end of the decade due to a “Trump 2.0” boost after Donald Trump 's recent election victory .

Yardeni, a longtime market analyst, said Tuesday that Trump's return to the White House — alongside a likely Republican-controlled Congress — will bring in a major regime shift that's positive for U.S. stocks, the economy and corporate profits.

Why Yardeni Sees Trump 2.0 As Game-Changer For Markets

Yardeni's optimism stems from his belief that Trump's policies will accelerate economic growth and improve the fiscal picture.

"We believe Trump 2.0 represents a major regime change that's bullish for the economy and stocks," Yardeni said in a note to investors, adding that a business-friendly environment might even help to resolve ongoing geopolitical tensions, as evidenced by recent drops in oil and gold prices.

Rising Profit Expectations: 2025, 2026 EPS Revised Higher

To back up his S&P 500 forecast, Yardeni adjusted his earnings expectations for the index's constituent companies.

He now expects 2025 earnings per share for the S&P 500 to hit $285, up from his previous estimate of $275. His 2026 EPS projection has similarly risen, from $300 to $320.

While much of the recent growth in S&P 500 earnings has been led by a handful of tech giants — the so-called “Magnificent 7” — Yardeni said he now predicts a broader strength ahead.

“We expect to see a broadening of the companies and industries for which analysts raise their sights in 2025,” he said.

Record Profit Margins: Tax Cuts, Deregulation in Focus

In Yardeni's view, Trump's anticipated policies could push corporate profit margins to new heights. He projects the S&P 500 profit margin will rise to 13.9% in 2025 and 14.9% in 2026, levels he attributes to expected tax cuts, deregulation and productivity growth.

One key policy shift Yardeni said he expects is a reduction in the corporate tax rate from 21% to 15%, along with tax breaks for individual income from tips, overtime and Social Security.

He also anticipates a wave of regulatory rollbacks, especially after a recent Supreme Court ruling that empowers businesses to challenge regulatory overreach.

Adjusted Scenario Probabilities: Betting On The ‘Roaring 2020s’

Yardeni has increased the probability of his “Roaring 2020s” scenario, now assigning it a 55% chance, up from 50%. He sees a “1990s-style meltup” as a 25% possibility, while the chance of a “1970s-style geopolitical and/or domestic debt crisis” has dropped from 30% to 20%, he said.