JPMorgan Cautions on S&P 500 Upside but Highlights Two Standout Stocks

JPMorgan''s Global Markets Strategy team has tempered expectations for the S&P 500, citing limited upside potential amid persistent macroeconomic risks. Despite a resilient outlook and strong momentum in select sectors, the bank warns that recession probabilities—currently priced at 15-20%—could cap further gains.

The firm notes short-term tailwinds, including macroeconomic resilience and the AI theme, may push markets toward new highs. Systematic buying and investor appetite for dips suggest a path of least resistance upward. Yet, the strategists emphasize caution, pointing to unresolved macro risks.

Amid this cautious stance, JPMorgan identifies two stocks with compelling upside potential, both rated as ''Buy'' by Wall Street analysts. While broader market gains may be constrained, these picks stand out for their resilience and growth prospects.