JPMorgan raised its 2026 year-end price target for the S&P 500 (SPX) to 7,600 on Tuesday, citing strength from the tech and AI sectors reignited by the release of Anthropic’s Claude Mythos model. Last month, the firm slashed its target to 7,200 from 7,500. JPMorgan also raised its 2026 EPS estimate for the index to $330 from $315, signaling year-over-year growth of 12%.
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Trade QQQ with leverage“We believe the Anthropic Mythos headline was the key catalyst, with 66% of S&P 500 AI names outperforming since April 7th — evidence of rapidly improving models and AI services,” said strategist Dubravko Lakos-Bujas.
JPMorgan Warns of Consolidation, Maintains Bullish Earnings View
At the same time, Lakos-Bujas warns that the recent rally is becoming stretched and could result in a “short-term consolidation phase” before resuming the uptrend. The weak breadth in the S&P 500 is also worth monitoring. Breadth refers to the proportion of stocks participating in a market move, such as how many S&P 500 components are rising versus falling.
Still, Lakos-Bujas expects S&P 500 companies to report strong first-quarter earnings and believes that full-year earnings estimates could be revised higher.