JPMorgan Sees 10% Surge in S&P 500 as Inflation Risks Weigh

JPMorgan Private Bank expects the S&P 500 to surge over 10% in the next 12 months, reaching around 8,200 by mid-next year. Despite inflation risks, Kriti Gupta, an executive director and global investment strategist at JPMorgan, believes the main foundations supporting the bull market are still strong.

One major reason for this optimism is strong economic growth. The US economy has continued to expand, giving companies and investors confidence even as inflation remains a concern. Another reason is the huge demand for artificial intelligence, which is expected to drive corporate profitability higher.

Gupta expects another year of double-digit stock market returns, citing the massive demand for AI. She also believes that if the Federal Reserve raises rates to deal with structural inflation problems rather than economic growth collapse, stocks could still perform well.