JP MORGAN CHASE(US:JPM) Hua Er Jie Jian Wen·2025-11-26 12:05Core Viewpoint - Morgan Stanley has significantly raised its target for the S&P 500 index, predicting it will reach 7500 points by the end of 2026, driven by strong corporate earnings growth and an AI capital investment boom [1][4]. Group 1: Market Outlook - The S&P 500 index is expected to rise approximately 11% from its recent closing price of 6765.88 points, surpassing the average forecast of 7269 points from Bloomberg-tracked strategists [1][4]. - In a more optimistic scenario, if the Federal Reserve's monetary policy is more accommodative than expected, the S&P 500 could potentially exceed 8000 points next year [4]. Group 2: Corporate Earnings - Strong corporate earnings are a key pillar of Morgan Stanley's bullish outlook, with expectations of 13% to 15% growth in earnings over the next two years [4]. - The report suggests that current high valuations are justified by above-trend earnings growth expectations, increased AI capital expenditures, and enhanced shareholder returns [5]. Group 3: Broader Market Sentiment - Other Wall Street analysts share a bullish sentiment, with some projecting the S&P 500 could rise to as high as 7800 points, citing a favorable environment for risk assets due to a combination of fiscal, monetary, and regulatory policies [6]. - Analysts from various firms, including Barclays and Macro Risk Advisors, have set significant milestones for the S&P 500, indicating a strong upward trajectory in the near term [6].