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JPMorgan predicts a 10% rally for the S&P 500 and names the U.S. sectors to watch

Industrial and construction material stocks will be among the sectors that will benefit as U.S. markets hit fresh highs over the next year, JPMorgan Private Bank’s Grace Peters told CNBC on Tuesday.

Peters, head of equities strategy at the wealth management arm of the U.S. bank, told CNBC’s “Squawk Box Europe” that investors should be adding cyclical exposure to their investment portfolios in the next 12 months, to benefit from the economic recovery following the coronavirus crisis.

The private bank forecasts that the S&P 500 would rise to between 3,500 and 3,600 points by the end of this year and then 3,750 by September 2021, representing a potential 10% rise from its last close at nearly 3,352points.

“We think certainly that the U.S. markets can make new highs over the next 12 months … we still think the earnings picture for the U.S. corporate is very strong … and also it’s that broader economic backdrop when we look at equities relative to other asset classes,” she told CNBC.

Reference: CNBC