J.P. Morgan on Tuesday \u200braised its year-end target for the \u200cS&P 500 index to 7,600, citing AI and tech-driven earnings, just weeks after lowering its forecast, with a ceasefire between the U.S. \u2060and Iran aiding \u200bsentiment.<\/p>\n
The revised target implies an upside of about 6.9 per cent from Monday\u2019s close of 7,109.14. The Wall Street brokerage had cut its target to 7,200 from 7,500 last month.<\/p>\n
J.P. Morgan \u200balso hiked its annual earnings-per-share forecast \u200cfor the index to US$330 from US$315. For 2027, it increased its EPS target to US$385 from US$355.<\/p>\n
U.S. equities have rebounded from their March lows following a ceasefire in the Middle East war.<\/p>\n
\u201cGiven the sharp rally from recent \u200clows and \u200ba geopolitical backdrop \u200cthat, while significantly de-escalated, remains in flux, there is a \u200bmeaningful risk that the market enters a short-term \u2060consolidation phase before resuming its upward trajectory,\u201d J.P. Morgan \u2060said in a note.<\/p>\n
However, the brokerage expects the index to hit \u200bnearly 8,000 by year-end if there is a quick resolution to the conflict.<\/p>\n
A strong momentum in AI and tech stocks helped the S&P 500 and Nasdaq touch record highs last week alongside expectations of robust first-quarter earnings.<\/p>\n
\u201cThe \u2060emergence of Anthropic\u2019s Mythos has helped reignite the bullish AI trade after a shaky start to the year,\u201d J.P. Morgan said.<\/p>\n
Anthropic unveiled its AI model \u2018Claude Mythos\u2019 earlier this month, but halted its release over concerns that it could expose hidden \u2060cybersecurity vulnerabilities.<\/p>\n
The brokerage said there is still \u200broom for further upside in consensus earnings estimates, noting recent positive \u2060revisions have been concentrated in a small group of technology firms and the energy \u200csector.<\/p>\n
\u201cWe expect the US to remain a core long-term holding in \u200bglobal portfolios due to its breakthrough innovation, overall superior growth, and capital returns, even though the diversification theme and repatriation flows out of the US are likely to persist \u200bin the background,\u201d it added.<\/p>\n","protected":false},"excerpt":{"rendered":"J.P. Morgan on Tuesday \u200braised its year-end target for the \u200cS&P 500 index to 7,600, citing AI and…\n","protected":false},"author":2,"featured_media":619007,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20],"tags":[62,901,276,277,888,902,879,877,903,49,48,876,895,896,891,878,875,46,549,295,894,887,914,880,881,893,889,890,884,904,885,909,910,912,907,911,905,908,882,898,899,714,897,906,865,61,900,892,886,883,913],"class_list":{"0":"post-619006","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-artificial-intelligence","8":"tag-ai","9":"tag-alberta","10":"tag-artificial-intelligence","11":"tag-artificialintelligence","12":"tag-arts-news","13":"tag-bc","14":"tag-breaking-news","15":"tag-breaking-news-video","16":"tag-british-columbia","17":"tag-ca","18":"tag-canada","19":"tag-canada-news","20":"tag-canada-sports","21":"tag-canada-sports-news","22":"tag-canada-trafficcanada-weather","23":"tag-canadian-breaking-news","24":"tag-canadian-news","25":"tag-economy","26":"tag-education","27":"tag-environment","28":"tag-federal-government","29":"tag-foreign-news","30":"tag-globe-and-mail","31":"tag-globe-and-mail-breaking-news","32":"tag-globe-and-mail-canada-news","33":"tag-government","34":"tag-life-news","35":"tag-lifestyle","36":"tag-local-news","37":"tag-manitoba","38":"tag-national-news","39":"tag-new-brunswick","40":"tag-newfoundland-and-labrador","41":"tag-northwest-territories","42":"tag-nova-scotia","43":"tag-nunavut","44":"tag-ontario","45":"tag-pei","46":"tag-photos","47":"tag-political-news","48":"tag-political-opinion","49":"tag-politics","50":"tag-politics-news","51":"tag-quebec","52":"tag-sports-news","53":"tag-technology","54":"tag-travel","55":"tag-trudeau","56":"tag-us-news","57":"tag-world-news","58":"tag-yukon"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/619006","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/comments?post=619006"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/619006\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media\/619007"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media?parent=619006"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/categories?post=619006"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/tags?post=619006"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}