JPMorgan Chase raised its year-end target for the S&P 500 index to 7600 on Tuesday, citing profit growth driven by artificial intelligence (AI) and the technology sector. This adjustment comes just weeks after the bank had lowered its forecast. A potential ceasefire between the US and Iran has also provided support for market sentiment.

The revised target implies an approximate 6.9% upside from Monday's closing level of 7,109.14. Last month, the Wall Street investment firm had reduced its S&P 500 target from 7500 to 7200.

Concurrently, JPMorgan increased its annual earnings per share (EPS) forecast for the index from $315 to $330 and raised its 2027 EPS target from $355 to $385.

Amid developments toward a ceasefire in Middle East conflicts, US stock markets have rebounded from their March lows. JPMorgan noted in a report, "Despite the significant rebound from recent lows and a notable easing of geopolitical tensions, uncertainties remain, and there is a substantial risk of a short-term consolidation phase before the market resumes its upward trajectory."

However, the bank projected that if conflicts are resolved swiftly, the S&P 500 could approach 8000 by year-end.

Boosted by strong momentum in AI and tech stocks, alongside optimistic expectations for first-quarter earnings, both the S&P 500 and Nasdaq indices hit record highs last week.

JPMorgan stated, "The launch of Anthropic's Mythos large language model has helped reignite the AI bullish trend, which had shown unstable performance earlier in the year." Earlier this month, Anthropic released its "Claude Mythos" AI model but paused its rollout due to concerns about potential cybersecurity vulnerabilities.

The bank also indicated that consensus estimates for overall corporate earnings still have room for further upward revisions, noting that recent positive adjustments have been concentrated in a handful of technology companies and the energy sector.

JPMorgan added, "Although themes of diversification and capital flowing back from the US to other markets may persist, we expect US assets to remain a core long-term holding in global portfolios, given the country's breakthrough innovations, generally superior growth performance, and capital return capabilities."