A strategist at banking titan JPMorgan Chase is predicting stocks will continue to rally next year after a strong performance in 2025.
In a new interview on CNBC’s Squawk Box, Stephen Parker, JPMorgan Private Bank’s co-head of global investment strategy, says that the stock market may cool to finish out the year, only to regain bullish momentum next year due to several market conditions.
“And while we think we’re headed for a slowdown into the back half of this year, there’s some nice tailwinds that are coming into the market for 2026. You have easier financial conditions, which is the Fed and rates and equity markets more broadly. You have the stimulus from the One Big, Beautiful Bill. And importantly, this is kind of central to our bullish case, this AI (artificial intelligence) spend, the capital expenditure boom that we’re seeing is having a huge impact not just on company profitability, but on economic growth more broadly.”
He also predicts that companies’ earnings reports will continue to show growth next year and act as a catalyst to give stocks a boost.
“When you think about what’s going to drive markets over the next six to 12 months, it’s going to be earnings. We’re not expecting multiples to continue to expand. In fact, it may come in a little bit. The good news is we’re teeing up another year of strong growth this year and next year, looking for our third double-digit earnings growth year in a row for the S&P. We think that’s what’s going to continue to drive markets higher.”
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