JPMorgan sees 'significant upside' for S&P 500

JPMorgan Chase, the largest bank in the United States, said New York equity markets have significant room to rise, provided Middle East tensions continue to ease and the Federal Reserve holds interest rates steady.

The bank's Global Markets Intelligence team, led by Andrew Tyler, said in a recent report that its "Tactical Positioning Monitor" indicator points to substantial upside for the S&P 500, Bloomberg reported Monday.

JPMorgan said it maintains a "tactically bullish" stance on US equities despite risks from crowding into semiconductor-related shares and uncertainty over the US-Iran war. The bank particularly expects US markets to benefit from falling bond yields, a weaker dollar and solid corporate earnings.

However, JPMorgan cautioned that rising AI-related capital expenditure does not automatically guarantee gains for semiconductor manufacturers and related infrastructure providers, adding that technology shares are under pressure as a result.

Even so, the bank said household consumption points to a strong economy, citing growth in household deposit balances and robust retail sales.

Meanwhile, international oil prices tumbled after the United States halted airstrikes against Iran over the weekend. West Texas Intermediate crude futures on the New York Mercantile Exchange closed Monday down 7.5 percent from the previous session at $82.61 per barrel.