JPMorgan Chase & Co: the stock market will rally another 15%

By:
on Apr 3, 2024
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  • Investors should get ready for the stock market to edge even higher, says JPMorgan Chase & Co.
  • In an article on their website yesterday, the banking titan stated stocks could rally another 15% this year.
  • Read their bullish analysis of the stock market here.

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When banking titan JPMorgan Chase & Co makes pronouncements about the market, people tend to listen. And, this week, the giant’s focus has been squarely on stocks.

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Yesterday, JPMorgan published a Top Market Takeaways article entitled ‘Bubble or Bliss? Why we think the stock market could grind higher’.

Another 15% rally coming

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The report had no shortage of good news for those bullish on equities, especially JPMorgan’s proclamation that the stock market is set to likely rise another 15% this year off the back of an already impressive surge.

Source: JPMorgan Chase & Co

Over the past 50 years, whenever the S&P 500 has rallied at least 25% in a 100-day period (as it has recently), the index was, on average, another 15% higher a year later and positive overall 98% of the time.”

Diversifying the stock rally

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Even better news was forthcoming, too – especially for those investors without the cash necessary to stock up on Nvidia shares. According to JPMorgan’s research, “the rally is broadening” away from just Magnificent 7 stock returns, which contributed to 60% of the S&P 500’s market returns in 2023.

So far in 2024, the Magnificent 7 have made up just 39% of the returns in contrast, with 61% of the S&P 500’s growth in the past quarter coming from outside those mega cap stocks.

Source: JPMorgan Chase & Co

Watch for earnings, and new IPOs

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According to JPMorgan, a major reason behind the stock market’s current renaissance is an uptick in earnings, with that profit growth driving the momentum.

This is good news for many, as we’re on the cusp of FY2025’s first earnings season, beginning later this April.

JPMorgan itself, for instance, will publish their Q1 results as early as April 12th.

Another thing to watch for is a slew of incoming IPOs, signalling increased confidence in the stock market, say JPMorgan Chase:

Expect more to come: The three-month sum of equity capital markets activity is at its highest levels since late 2021, but it’s still down more than 80% from the peak.”

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JPMorgan Chase & Co Finance & Banking Stock Market