JPMorgan Private Bank Sees Path for S&P 500 to Reach 9,000 by Mid-2027

JPMorgan Private Bank said the S&P 500 could reach 9,000 by mid-2027 in a scenario where artificial intelligence produces larger productivity gains than markets currently expect. The bank described the target as a 22 percent increase from current levels. Kriti Gupta, a global investment strategist, and Nick Roberts, a portfolio manager at JPMorgan Private Bank, wrote the note on Wednesday.

Technology stocks in the S&P 500 have risen 23 percent year-to-date, compared with an 8 percent gain for the broader index. The bank noted that productivity growth could allow corporate earnings to expand at more than 10 percent annually without increasing inflation. 8 percent and the S&P 500 posted five consecutive years of returns above 20 percent.

U.S. Treasury, are not uncommon. Stocks can tolerate higher yields when growth expectations remain strong, the note stated. Gupta and Roberts described the recent pullback in momentum stocks such as semiconductors as a healthy adjustment that could set the stage for further gains.