Inside JPMorgan’s 2026 Stock Market Hopes and New London HQ

JPMorgan is stepping into 2026 with high hopes for the stock market, with its top market strategists predicting it will be another good year for US investors.

According to Dubravko Lakos-Nujas, the firm’s Head of Global Market Strategy, the benchmark S&P 500 should end next year at 7,500, helped by a resilient US economy and an AI-driven “supercycle”.

The outlook, published on 25 November by Dubravko and his analyst team, assumes two additional rate cuts from the Federal Reserve. 

They also indicated that with even more policy easing, the S&P 500 has the potential to climb past 8,000 in 2026.

The 7,500 call for next year is primarily supported by expected earnings growth of between 13% and 15% over the next two years.

According to FactSet data, S&P 500 companies grew earnings by 13.4% in the third quarter, rising 13.4% from 2024.

According to Yahoo Finance, the firm wrote in a note to clients on the same day: "Despite AI bubble and valuation concerns, we see current elevated multiples correctly anticipating above-trend earnings growth, an AI capex boom, rising shareholder payouts and easier fiscal policy."

Fed cuts now expected sooner

JPMorgan has also shifted its outlook for US interest rates and now expects the Federal Reserve to cut rates by 25 basis points in December, instead of waiting until January as it previously predicted. 

The change came on 26 November after comments from several senior Fed officials, including New York Fed President John Williams, that suggested an earlier cut may be on the table, a signal markets quickly reacted to.

Reuters reports that JPMorgan’s Chief US Economist, Michael Feroli, wrote in a note that the latest remarks from policymakers "tilts the odds toward the Committee deciding to cut rates in two weeks from today". He added that the bank continues to expect one more cut in January.

Goldman Sachs delivered a similar view in a note, saying the delayed September jobs report may have "sealed" the case for a cut at the 9-10 December meeting, with no major data expected before then.

Big new London HQ planned

Further positioning itself as a global powerhouse, the firm has announced it will build a three-million-square-foot tower in Canary Wharf, according to Business Wire, strengthening London’s position as a global financial hub.

Jamie Dimon, Chairman and CEO, said in a statement: “London has been a trading and financial hub for more than a thousand years, and maintaining it as a vibrant place for finance and business is critical to the health of the UK economy.

“This building will represent our lasting commitment to the city, the UK, our clients and our people. The UK government’s priority of economic growth has been a critical factor in helping us make this decision.”

This new workplace would enable additional capacity for 12,000 employees, including an additional 7,800 jobs across construction and local industries.

Serving as the firm’s principal headquarters in the UK and its most significant presence in EMEA, it’s projected to contribute £9.9bn (US$13bn) over six years to the local economy.

Announced on the same day as the Autumn Budget 2025, Chancellor Rachel Reeves commented: “My Budget doubles down on growth as our number one priority by creating the conditions for businesses to invest and succeed.

“I am thrilled that JPMorganChase has chosen London for its landmark new building - a multi-billion pound vote of confidence in the UK economy and this government’s plans for growth, which are built on the rock of stability.”

The plans are being developed in collaboration with Canary Wharf Group, including new public parkland surrounding the building, a redevelopment of Canary Wharf dock and improved access to the Riverside area.

It marks an investment in employees: it will include collaborative spaces and support employees’ physical and emotional wellbeing with terraces and rooftops, wellness spaces, nursing rooms, restaurants and cafés.

Matthieu Wiltz, Co-CEO of JPMorganChase in EMEA, added: “So many of us across Europe have built our finance careers in London, and we are aiming to build a legacy that will benefit the city and its communities for generations to come.”

The plans are subject to a continuing positive business environment in the UK and the receipt of the necessary approvals and agreements at a national and local level.