J.P.Morgan on Wednesday joined major Wall Street brokerages to raise its 2026 year-end target for the S&P 500 index, lifting it to 7,800, citing strong earnings momentum driven by the AI-led investment boom and resilient economic conditions.
The current target, roughly 6% higher than the index's last close of 7,365.46 points, adds to a chorus of bullish brokerage calls, with at least seven research firms raising their targets this month.
The brokerage previously forecast the index to end the year at 7,600.
It also lifted its S&P 500 earnings-per-share forecast to $350 for 2026 and expects them to hit $390 for 2027.
"The path upwards will be non-linear, as the market will need to clear various hurdles," J.P.Morgan strategists said in their mid-year outlook note.
"Strong back-to-back earnings have reset the bar higher heading into the 2Q season, making it more difficult for companies to significantly surprise to the upside on both earnings and capex," they said.
The S&P 500 is up 7.6% so far this year, broadly driven by AI optimism, while the U.S.-Iran peace deal has also helped revive investor sentiment.
However, rapidly rising equity issuance over the coming quarters, along with the prospect of tighter monetary policy, could weigh on equity valuations, J.P.Morgan warned.
Separately, BCA Research strategists in a note dated June 23 lifted their index target to 8,100 from 7,700.
"Put simply, we are raising the target because earnings have improved, not because we are willing to pay more for those earnings," BCA said in a note.
