Wall Street strategists expect further stock market gains in the second half of 2026, driven by earnings and liquidity. Baird investment strategist Ross Mayfield called it a bull market, citing falling oil and gasoline prices and resilience in the Nasdaq Composite and S&P 500. The S&P 500 just posted its strongest quarter in six years, and industry analysts predict a 21% gain over the next 12 months, according to FactSet. JPMorgan raised its year-end S&P 500 target to 7,800, while a weaker-than-expected jobs report eased concerns about Federal Reserve rate hikes. However, strategists warn against chasing high-flying semiconductor stocks after the Philadelphia Semiconductor Index's record quarter, and some question whether massive AI infrastructure spending by Big Tech will pay off. Schwab Asset Management's Omar Aguilar recommends diversifying into industrials, healthcare, materials, small- and midcaps, and international stocks.
JPMorgan Chase & CoJPMorgan raised its year-end S&P 500 target to 7,800, reflecting a bullish outlook that could benefit its investment banking and trading revenues.