India, Aug. 2 -- JPMorgan expects the S&P 500 to rise more than 10% over the next 12 months, even as the US economy faces fresh inflation problems. Kriti Gupta, an executive director and global investment strategist at JPMorgan Private Bank, expects the benchmark index to reach around 8,200 by the middle of next year.

Gupta said inflation is already arriving in waves. The first major wave came after the pandemic, when prices jumped sharply. This was followed by energy-related inflation shocks linked to the Iran war earlier this year, Gupta said, via Business Insider.

But JPMorgan does not believe inflation alone will end the stock market's long-term rally. Gupta said the main foundations supporting the bull market are still strong. One ...