JPMorgan Lifts S&P 500 Target as AI Rally Regains Momentum

A renewed surge in enthusiasm for artificial intelligence will help drive US stocks to higher-than-expected levels this year, according to strategists at JPMorgan Chase & Co.

The team led by Dubravko Lakos-Bujas has raised its year-end target for the S&P 500 to 7,600 points, after a downgrade to 7,200 points made just last month. The US benchmark closed at 7,109 points on Monday, implying further gains of about 7%.

The strategists’ bullish call is due to a stronger outlook for technology and AI, as they expect the sector to boost corporate earnings and offset lingering concerns around the Iran ...