JPMorgan Raises S&P 500 Year-End Target to 8,000

JPMorgan Private Bank strategists have raised their year-end target for the S&P 500 to 8,000, suggesting a 5% upside. The bank predicts the index is positioned for "outsized returns" following the upcoming U.S. midterm elections, citing improving market breadth as a bullish signal. Specifically, over 50% of stocks have hit new 20-day highs for the first time since the second quarter of 2025.

This optimistic outlook follows a significant sell-off in the artificial intelligence sector, which impacted the Nasdaq 100 and AI-related ETFs. The decline was driven by investor concerns regarding capital expenditure in Big Tech, highlighted by negative cash flow reports from Intel and Amazon.com.

BlackRock analysis supports the bullish projection, noting that the S&P 500 has gained an average of 14% in the six months following midterm elections since 1970.