J.P. Morgan lifts 2026-end target for S&P 500 to 8,000 on AI, earnings strength

Reuters

Mon, August 10, 2026 astatine 1:19 AM CDT 2 min read

Aug 10 (Reuters) - J.P. Morgan raised its year-end people for the S&P 500 scale to 8,000 from 7,800 connected Monday, citing ‌prospects of coagulated firm net and rising assurance that AI ‌investments by ample hyperscalers would thrust faster gross growth.

The caller people implies astir 3.1% upside ​from the index's past adjacent of 7,757.64 and adds to a increasing question of bullish calls, with astatine slightest 7 brokerages present expecting the benchmark to scope the 8,000 level by 2026-end.

"As elevated backlogs person into recognized revenue, ‌cloud maturation should stay ⁠well supported, helping validate rising AI capex, fortify bid coverage, and further easiness ROIC (return connected invested capital) concerns," J.P. ⁠Morgan analysts said.

The brokerage besides revised its S&P 500 earnings-per-share forecasts to $365 for 2026 and to $420 for 2027. It had earlier expected $350 for 2026 and $390 for ​2027.

Of the ​436 S&P 500 companies that had ​reported June-quarter results done Friday ‌morning, 85.1% bushed expert expectations, according to LSEG data, good supra the semipermanent mean of 68% since 1994.

J.P. Morgan said the benefits of rising AI investments were clearer successful the 2nd quarter, particularly astatine Google, Amazon and Microsoft, arsenic beardown unreality growth, larger backlogs and amended cash-flow visibility ‌eased capitalist concerns astir returns connected spending.

Despite ​the beardown net backdrop, J.P. Morgan maintained its ​forward valuation aggregate people ​at astir 20 times, citing higher involvement rates, geopolitical risks ‌and a ample proviso of equity ​and indebtedness issuance.

The ​S&P 500 has gained 13.3% truthful acold this year, buoyed by AI optimism, adjacent arsenic uncertainty implicit the reopening of the Strait ​of Hormuz and talks ‌involving Iran, Oman and the United States has kept unit connected ​oil markets and shipping.

(Reporting by Kanishka Ajmera successful Bengaluru; Editing ​by Mrigank Dhaniwala and Subhranshu Sahu)