S&P 500 is slated to open in the green today after the Bureau of Labour Statistics said inflation was up slightly more-than-expected in September.

JPMorgan expert remains bullish on S&P 500

Versus a year ago, consumer prices were up 3.7% last month versus Dow Jones estimates for a 3.6% increase. The print comes only a day after FOMC minutes confirmed that officials were expecting rates to remain higher for longer.

Still, Elyse Ausenbaugh of JPMorgan expects the benchmark index to be back at its record high by mid-2024. On CNBC’s “Squawk Box”, she said today:

 

We’re still encouraging folks to work that muscle again and start adding exposure to equities.

For the month, consumer prices came in up 0.4% on Thursday versus a 0.3% increase expected.

Ausenbaugh shares her view on the Israel-Palestine war

Excluding food and energy, the so-called core consumer price index (CPI) printed at up 4.1% for the year and 0.3% for the month – exactly in line with economists’ forecast.

Ausenbaugh attributed much of the recent pullback in the S&P 500 to a sharp increase in yields that made stocks less attractive so to speak. But now that valuations have come down a bit, she is recommending building positions in equities again.

The JPMorgan expert is also convinced that the ongoing war in Israel is unlikely to have a sustained impact on the U.S. economy.

The benchmark S&P 500 index is currently down about 5.0% versus its year-to-date high. Als on Thursday, the Social Security Administration announced a 3.2% increase in cost-of-living adjustment for next year versus a record 8.7% in 2023.

More By This Author:

Wizz Air Share Price Outlook: To Get Worse Before Getting Better
Soybeans Price Spikes As WASDE Report Points To Lower Yields
Netflix Stock Just Received A Downgrade From Wolfe Research