JPMorgan Strategists Raise S&P 500 Target as AI Capex Pays Off

August 10, 2026

Breaking News

JPMorgan Chase & Co. strategists raised their S&P 500 forecast for the second time in two months, citing strong corporate earnings and signs that massive artificial intelligence spending is beginning to pay off.

The team led by Dubravko Lakos-Bujas now sees the U.S. benchmark rising to 8,000 points, implying gains of about 3% from Friday's close.

They previously raised their target to 7,800 from 7,600 in June. The latest forecast is slightly above the average target among 20 strategists polled by Bloomberg.

The second-quarter earnings season has provided evidence that capital expenditure by AI hyperscalers is translating into customer demand, the JPMorgan team said.

They cited stronger cloud growth and increased backlogs at Alphabet, Amazon, and Microsoft, which should ease concerns about returns on invested capital.

"As elevated backlogs convert into recognized revenue, cloud growth should remain well supported, helping validate rising AI capex," they said. "Across hyperscalers, demand indicators remain high and rising."

The S&P 500 has reclaimed record highs as corporate earnings surged 32%, marking one of the strongest increases on record.

Investors remain focused on Big Tech's massive AI spending and its impact on cash flow. Yahoo Finance reports.

EdgeUp

🧬 Sobi Enters Strategic Partnership With Innate Pharma. Stock Soars in Pre-Market

Swedish Orphan Biovitrum AB (Sobi) and Innate Pharma announced a strategic partnership to enable the initiation of the TELLOMAK-3 Phase 3 confirmatory study in cutaneous T-cell lymphoma (CTCL), a key step toward a potential accelerated approval of lacutamab in Sézary syndrome, a subtype of CTCL.

Under the agreement, Innate will conduct the TELLOMAK-3 Phase 3 trial, supporting a planned accelerated approval filing in Sézary syndrome.

The study is also expected to support applications for full approvals in key jurisdictions for Sézary syndrome and mycosis fungoides, the most common subtype.

Sobi will receive exclusive global commercialization rights for lacutamab upon potential accelerated approval and will be eligible to assume full global development rights following positive Phase 3 results.

Closing of the transaction remains subject to customary conditions, including receipt of transaction-related antitrust clearance. PR Newswire reports.

📷 Tech Giants TSMC and Sony to Invest Billions in Advanced Chip Sensor Plant

The joint venture is expected to be owned 60% by Sony and 40% by TSMC, with mass production potentially beginning as early as 2029, according to the report.

The companies are expected to finalize the investment agreement in the coming months.

The partnership would see the two tech giants jointly develop and produce high-performance camera sensors at Sony Semiconductor Solutions’ existing plant in Kumamoto. Yahoo Finance reports.

🛰️ Rocket Lab Stock Is Gaining Monday: What's Going On?

Rocket Lab Corp. stock traded higher Monday ahead of the space company’s second-quarter earnings, as investors weighed a major U.S. Space Force contract win against expectations for continued losses as Rocket Lab invests in its next-generation Neutron rocket.

The company recently won a $397 million contract to build and launch Flatellite spacecraft for the U.S. Space Force using its upcoming Neutron rocket.

The contract also includes an option for the government to add more Flatellites. Benzinga reports.

🎥 Sony, TSMC Plan $6.3B Image Sensor Plant in Japan as Apple Camera Demand, ‘Physical AI’ Drive Expansion

Sony Group and TSMC reportedly plan to invest $6.3 billion in a state-of-the-art image sensor semiconductor plant in Kumamoto, Japan.

Production at the new facility is slated to begin as early as 2029 and will be operated through a joint venture, with Sony holding a 60% majority stake and TSMC owning the remaining 40%, according to Nikkei Asia.

The collaboration between the two companies was agreed upon in May. Benzinga reports.

🏢 Why Avalon Holdings Shares Are Trading Higher by More Than 10%

Shares of Avalon Holdings Corporation rose sharply in pre-market trading after the company reported second-quarter financial results.

Avalon Holdings posted quarterly earnings of 23 cents per share, up from 7 cents per share in the year-ago period. The company’s sales increased to $20.898 million from $20.252 million in the year-ago quarter.

Avalon Holdings shares jumped 10.5% to $2.8399 in pre-market trading. Benzinga reports.

Top 5 Movers in Early Pre-Market

(All pricing and percent gains are based on Early Pre-Market from 4:00 AM to 7:00 AM ET). Stock Analysis reports.

1) JWEL: Jowell Global Ltd.
Total gain: +218.71%

2) STKH: Steakholder Foods Ltd.
Total gain: +146.81%

3) ZYLY: Jin Medical International Ltd.
Total gain: +86.98%

4) DKI: Darkiris Inc.
Total gain: +65.12%

5) VREX: Varex Imaging Corporation
Total gain: +49.07%

Yesterday’s Biggest Movers

The closing price of the top three market percent gainers trading near or above $3 on August 7.

(All pricing and percent gains are based on regular market trading hours from 9:30 AM to 4:00 PM ET) Stock Analysis reports.

1) YJ: Yunjii Inc.
Total gain: +176.42%
The stock appeared to be moving on no notable news.

2) MB: MasterBeef Group
Total gain: +137.87%
The stock appeared to be moving on no notable news.

3) RCEL: AVITA Medical, Inc.
Total gain: +63.58%
The company announced it will be participating at the Canaccord Genuity 46th Annual Growth Conference in Boston, taking place August 11–13, 2026. Globe Newswire reports.

Today’s Notable Earnings

(Estimate and Actual numbers represent Earnings Per Share in US Dollars)

NIU: Niu Technologies
Q2 2026
Before Market Open
Estimate: N/A
Actual: -0.190

RIOT: Riot Platforms
Q2 2026
After Market Close
Estimate: -0.330
Actual: N/A

BTDR: Bitdeer Technologies
Q2 2026
After Market Close
Estimate: -0.340
Actual: N/A

Parting Thoughts

“The best investment strategy is the one you can stick with.”

– John C. Bogle

Sourced in: The Little Book of Common Sense Investing — Wiley.

Disclaimer

TradeZero America, Inc., a United States broker dealer, registered with the Securities and Exchange Commission (SEC) and member of the Financial Industry Regulatory Authority (FINRA) and the Securities Investor Protection Corporation (SIPC); TradeZero, Inc., a Bahamian broker dealer, registered with the Securities Commission of the Bahamas ; TradeZero Canada Securities ULC, a Canadian broker dealer, member firm of Canadian Investment Regulatory Organization (CIRO) and member of the Canadian Investor Protection Fund (CIPF); and TradeZero Europe B.V., a Dutch broker dealer, authorized and regulated by the Dutch Authority for the Financial Markets (AFM) (collectively, the “TradeZero Broker Dealers”).

TradeZero Broker Dealers offer self-directed electronic securities trading to their customers. TradeZero Broker Dealers do not provide financial or trading advice and do not make investment recommendations to their customers. This communication does not constitute an offer to sell or a solicitation to buy any security or instrument which it may reference.

The information in this newsletter summarizes the latest market activity and related news and are provided for educational purposes only. Any trading symbols displayed are for illustrative purposes only and do not constitute a recommendation by TradeZero to buy, sell, or hold any investment. This material is not intended to provide investment advice or to take into account any individual’s financial condition, investment objectives, or requirements.

Investing involves risk, including the possible loss of principal.

There is a risk of loss in online trading of securities including equities and options. Trading on margin is for experienced investors whereby the loss can be greater than your initial investment. Likewise, short selling as a securities trading strategy is extremely risky and can lead to potentially unlimited losses.

Options trading is not suitable for all investors as it can involve risk that may expose investors to significant losses. Please read the Characteristics and Risks of Standardized Options, also known as the Options Disclosure Document (ODD) at OCC.

Stocks experiencing significant price volatility may involve substantial risk. Past performance is no guarantee of future results.

Any trading strategies discussed are for educational purposes only and should not be construed as investment advice or a recommendation.

Certain information herein has been obtained from third-party sources believed to be reliable; however, its accuracy or completeness cannot be guaranteed. The views and opinions expressed are those of the author and do not necessarily reflect the views or opinions of TradeZero, its affiliates, or employees.

If you have any specific questions about TradeZero's brokerage services, please reach out to the TradeZero Broker Dealer servicing your jurisdiction.