JPMorgan hikes 2026 S&P 500 target, but sees hurdles ahead for stocks
Dubravko Lakos-Bujas said the index could gain 5.9% as strong earnings and AI spending support equities despite rising supply and tighter policy risks.
- On Wednesday, JPMorgan raised its 2026 year-end S&P 500 target to 7,800, citing strong earnings momentum driven by the AI-led investment boom and resilient economic conditions.
- Strategist Dubravko Lakos-Bujas said stocks are heading into a "Blue Sky" scenario as the Iran war heads toward resolution, offsetting tariff uncertainty and supply-chain disruptions.
- The bank warned of "extreme crowding" in momentum stocks; Invesco's Momentum ETF dropped 4.5% since Monday after surging 29% year-to-date.
- Lakos-Bujas wrote that the path upwards will likely be non-linear as markets clear hurdles, with rising equity supply and potentially tighter monetary policy constraining multiples.
- BCA Research lifted its target to 8,100, matching Citi and Oppenheimer, while Bank of America holds the lowest projection at 7,100 among major strategists.
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12 Articles
JPMorgan Underestimated S&P 500 Earnings Growth; Raises Year-End Target to 7,800. U.S. bank JPMorgan Chase raised its year-end forecast for the Standard & Poor's S&P 500 index from the previous 7,600 to 7,800, reflecting the trend of robust corporate earnings growth. Bloomberg [reported on the 24th, local time]
JPMorgan just got more bullish on stocks, but is wary of a flash crash brewing in crowded trades
Bryan R. Smith / AFP via Getty ImagesJPMorgan sees a high risk of a flash crash in stocks.The bank is still bullish on stocks through year-end, but says the path won't be a smooth move upward. Analysts see risks stemming from "extreme crowding" in momentum stocks. JPMorgan says beware of a flash crash brewing in the stock market's hottest speculative trades. Strategists at the top bank said they're still bullish on stocks overall, raising their …
Times of India
The Economic TimesUS stocks: JP Morgan raises S&P 500 year-end target to 7,800, joins bullish trend
J.P. Morgan has elevated its forecast for the S&P 500 in 2026 to 7,800, driven by strong earnings from AI investments and a consistent economic environment. This optimistic prediction aligns with a recent trend of upgrades from various brokerages. Despite recognizing challenges such as increased stock issuance and stricter monetary policies, strategists maintain a positive view on earning growth, expecting substantial advancements until 2027.
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