JPMorgan: Reliance on Inflation Alone is Insufficient to End Long-Term Equities Rally

August 3rd, a top strategist at JPMorgan Chase said that despite the United States experiencing "inflation rollercoaster," this will not prevent the stock market from soaring to new highs – the S&P 500 index is expected to rise by about 10% in the next 12 months.

Kriti Gupta, Executive Director and Global Investment Strategist at J.P. Morgan Private Bank, predicts that by the middle of next year, the benchmark index will reach around 8200 points. J.P. Morgan believes that inflation alone is not enough to halt the stock market's long-term upward trajectory.

Gupta stated that the key pillars supporting the bull market remain strong: one significant reason is robust economic growth. The U.S. economy continues to expand, providing confidence to businesses and investors even though inflation remains a concern; another key reason is the substantial demand for artificial intelligence in the market. Gupta expects the U.S. stock market to continue to deliver double-digit returns this year.