Investment bank JP Morgan wrote that the US stock market’s rally is far from finished and could go much higher. The leading bank indicates that the bull run could continue well into the other half of the year. The bullish forecast from the investment bank indicates that institutional clients are willing to test how far the markets can stretch.

JP Morgan’s Asset Management strategist Jordan Jackson said in an interview with CNBC that he expects a stock market rally. The strategist ruled out that the bank expects a recession in the next 12 months and is confident in the market’s prospects.

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JP Morgan Analyst Says Stock Market Will Hit New All-Time Highs

The JP Morgan analyst explained that he believes the US stock market will print new all-time highs next. “Markets do appear to be, as we flirt with all-time highs, sort of sanguine over the very, very near term. But that being said, I would say over the next 12 months, I think markets are going to be higher than where they are today, probably meaningfully so.”

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Jackson said that Corporate America effectively navigated the uncertainty of Trump’s trade policies and will drive the stock market up. The companies have been resilient during these testing times, which can set up the markets for another rally. “I think when you look at the broader backdrop, you’ve got to look at resiliency in some of the earnings. And I think we’ll see that in some of the tech earnings that we get over the course of this week,” said the JP Morgan analyst.

Dow Jones, Nasdaq Composite, and the S&P 500 index are all on the greener side of the spectrum this year. They are up by more than 5% year-to-date, and JP Morgan is confident that the stock market will go higher.