Global market strategists at JPMorgan anticipate continued gains for US equities through the end of the year, following the S&P 500’s recent record high. Led by Nikolaos Panigirtzoglou, the strategists foresee retail investors playing a crucial role in driving this growth. They estimate a potential equity buying flow of approximately $US500 billion for the remainder of the year, which could propel equities by an additional 5 per cent to 10 per cent. The S&P 500 is a stock market index representing the performance of 500 of the largest publicly traded companies in the United States. JPMorgan Chase & Co. is a leading global financial services firm.
According to Panigirtzoglou, retail investors could contribute a substantial $US360 billion boost to US markets. The strategists were not overly concerned by profit-taking activities among retail investors during May and June, which followed a significant recovery in US equity markets from the lows experienced in April. They believe retail investors will resume their equity buying activity and continue to support the equity market from July onwards.
In addition to retail investors, JPMorgan expects investors outside the US to resume buying US equities, ending a trend that began in February. Panigirtzoglou suggested that this ‘boycotting’ of US equities by foreign investors is unsustainable, as they cannot afford to avoid the largest and most vital growth segment of global equity markets, particularly the S&P 500 and the ‘magnificent seven’ companies.
Should the US dollar stabilise and foreign real money investors resume purchasing US equities, JPMorgan anticipates an additional $US50 billion to $US100 billion of buying flow into US equities in the latter half of 2025, further contributing to market growth.
