JPMorgan Cuts S&P 500 Target to 7,200, Arm Gains 3% on AI Upgrade
JPMorgan strategists cut the S&P 500 year-end target to 7,200 from 7,500, citing a Strait of Hormuz closure and sustained $110 oil that could trim index EPS by 2–5%. Arm Holdings shares rose over 3% after an upgrade to Buy and a $205 price target on AI CPU growth.
1. JPMorgan Revises S&P 500 Year-End Target
JPMorgan strategists lowered their S&P 500 year-end estimate from 7,500 to 7,200, citing the Strait of Hormuz closure as a supply shock threatening global growth. They warn that sustained $110 crude could force a 2–5% EPS reduction and recommend robust downside hedges given market stress.
2. Arm Holdings Receives AI-Focused Buy Upgrade
Arm Holdings shares jumped over 3% after an investment firm raised its rating to Buy and lifted its price target from $90 to $205, highlighting AI-driven server CPU demand. The upgrade noted hyperscalers’ shift to v9 architecture and opportunities for doubled royalty revenue per chip.