"JPMorgan forecasts the S&P 500 will reach 7,000 by early 2026 due to strong corporate spending and AI-driven growth. Both JPMorgan and Piper Sandler say the new corporate expensing laws in President Trump's OBBBA, and AI investment, are key drivers. That's how stocks are climbing a "wall of worry" despite war and chaos in Eastern Europe and the Middle East."
""S&P 500 has delivered a 31% gain since the April 9th lows, the best 5 month performance in roughly two decades outside of a recession," according to JPMorgan's Dubravko Lakos-Bujas. What's happening is that stocks are climbing "the wall of worry," he told clients in a note this morning. The wall of worry is a cliché that describes the notion that investors like hearing bad news because they can price it in and leave it in the rearview mirror-"
JPMorgan projects the S&P 500 will climb to 7,000 by early 2026, citing strong corporate spending and AI-driven growth as core drivers. Piper Sandler and JPMorgan attribute part of the boost to new corporate expensing rules in President Trump's OBBBA. Stocks have rallied strongly, delivering a 31% gain since April lows, even as geopolitical turmoil in Eastern Europe and the Middle East intensifies and U.S. employment figures were materially revised lower. S&P 500 futures and the underlying index sit near record highs, with warnings of short-term downside to 6,000-6,200 amid a midterm path higher to 7,000.
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