JPMorgan's stock strategy team has turned bullish, starting to favor the US stock market, with an s&p 500 index target of 6,500 points by the end of next year.

The bank's stock strategy team, led by Dubravko Lakos-Bujas, believes that expectations of a prosperous capital expenditure based on a healthy labor market, easing, and the competition for the leading position in ai technology, as well as other favorable factors, are driving the rise of the US stock market.

He added that the escalating geopolitical uncertainties and the constantly changing policy agenda are bringing unusually complex impacts to the outlook, but the opportunities may be greater than the risks.