economy
Here's the case for 9,000 on the S&P 500 by the middle of next year, according to JPMorgan
Higher productivity could be even more supportive of the stock market than previously thought.
TL;DR
- JPMorgan Private Bank projects a potential S&P 500 target of 9,000 by mid-2025.
- This optimistic scenario hinges on artificial intelligence driving significant productivity increases across all economic sectors.
- Recent earnings reports indicate AI is beginning to unlock productivity gains for businesses.
- The stock market has achieved six consecutive quarters of double-digit earnings growth, a rare occurrence not seen since after the 2008 financial crisis.
- While consolidation is expected by some, JPMorgan believes fundamental factors support continued market gains, similar to the 1990s boom fueled by productivity growth.