JPMorgan says vaccine news could take the S&P 500 as high as 4,500 next year, or 24% from here

People visit the Charging Bull Statue during Covid-19 pandemic in Lower Manhattan, New York City, United States on May 25, 2020.
Tayfun Coskun | Anadolu Agency | Getty Images

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JPMorgan said Monday's surprise vaccine news is setting the stock market up for big gains next year, seeing the potential for S&P 500 to surge as much as 24% by the end of 2021.

"The equity market is facing one of the best backdrops for sustained gains in years. After a prolonged period of elevated risks (global trade war, COVID-19 pandemic, US election uncertainty, etc.), the outlook is significantly clearing up, especially with news of a highly effective COVID-19 vaccine,"  Dubravko Lakos-Bujas, chief U.S. equity strategist at JPMorgan, said in a note on Monday.