JPMorgan Issues Bullish S&P 500 Forecast, Eyes $8,000 by 2026 Amid AI-Driven Earnings Boom
JPMorgan's equity strategy team, led by Dubravko Lakos-Bujas, has set a year-end 2026 price target of 7,500 for the S&P 500, with potential to surpass 8,000 if the Federal Reserve delivers at least two more rate cuts. The forecast hinges on above-trend earnings growth, an AI capex boom, and easier fiscal policy. Corporate earnings are already tracking an 8.4% YoY revenue increase in Q3.
Deutsche Bank echoes the optimism, predicting the index will breach 8,000 as AI adoption fuels earnings growth, potentially lifting S&P 500 EPS to $320. "Rapid AI investment will dominate market sentiment," the bank noted, underscoring technology's transformative role in equity valuations.