Analysts at J.P. Morgan Non-public Financial institution say the S&P 500 could also be on its method to 9,000 fueled by broader synthetic intelligence adoption and a sustained earnings supercycle.
Strategist Kriti Gupta says the index has already delivered six consecutive quarters of double-digit earnings progress. International earnings progress accelerated from 15.3% year-over-year within the fourth quarter of 2025 to 22.6% within the first quarter of 2026, the very best in over 4 years.
The analyst says 9,000 may occur by mid-2027, however requires AI adoption to unfold past the know-how sector, lifting productiveness and margins economy-wide.
The biggest cloud suppliers are deploying over $800 billion in AI capital spending yearly, scaling to an estimated $1.16 trillion by 2027. Analysts draw a parallel to the late Nineteen Nineties productiveness growth, when the S&P 500 delivered 5 consecutive years of returns above 20%.
In line with J.P. Morgan Non-public Financial institution:
“Whereas not the bottom case, the S&P 500 may attain as excessive as 9,000 by mid-2027. A ~22% achieve from present ranges could appear optimistic, however stays completely believable.”
Key dangers embody rising bond yields, with 10-year Treasury yields climbing greater than 40 foundation factors in Could, and ongoing geopolitical tensions. The analysts describe the present pullback in semiconductor and momentum shares as “completely wholesome” and positioning for the following leg increased.
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