JPMorgan has raised its year-end S&P 500 price target to 7,600, up from 7,200 set just last month. The bank pointed to stronger earnings expectations and easing geopolitical tensions as the main drivers.
The revised target represents about 6.9% upside from Monday’s close of 7,109.14.

The bank lifted its 2026 earnings-per-share estimate for the index to $330 from $315. That would represent 22% year-on-year growth. It also raised its 2027 EPS forecast to $385 from $355. Both figures are above the current Wall Street consensus.
JPMorgan kept its forward price-to-earnings multiple unchanged at 22x. The entire upgrade was driven by higher earnings estimates, not a change in valuation.
Strategists led by Dubravko Lakos-Bujas said that if geopolitical tensions are resolved quickly, the multiple could expand to 23x. That scenario would put the S&P 500 near 8,000.
Anthropic’s new AI model, Claude Mythos, was named as a key catalyst for the recent market rally. JPMorgan said 66% of S&P 500 AI-related stocks have outperformed since April 7.
Anthropic unveiled Mythos earlier this month but paused its release over concerns it could expose hidden cybersecurity vulnerabilities.
Anthropic’s revenue run rate has tripled so far this year. JPMorgan expects hyperscalers to report a similarly upbeat tone during the current earnings season.
AI capital expenditure is forecast to rise 58% year-on-year to $775 billion by year-end 2026. Consensus projections put last-twelve-month capex near $800 billion by the end of Q1 2027.
Earlier in the year, rising AI capital expenditure had caused concern among investors, weighing on sentiment.
A ceasefire between the US and Iran helped ease market anxiety. US equities have rebounded from their March lows since the ceasefire was announced.
Oil prices remain in the $90 per barrel range, and JPMorgan noted the geopolitical situation, while improved, is still in flux.
The bank flagged a short-term risk. The 10-day RSI has exceeded the 95th percentile following the sharp rally from recent lows.
The bank expects first-quarter earnings to be more encouraging than the previous quarter, when AI spending fatigue weighed on sentiment.
Recent positive earnings revisions have been concentrated in a small group of technology and energy companies, and JPMorgan sees room for further upside to consensus estimates.
The post JPMorgan Raises S&P 500 Target to 7,600 as AI Momentum Returns appeared first on CoinCentral.


