JPMorgan Chase & Co.’s trading desk is turning tactically bullish on US equities, predicting that tailwinds including Big Tech earnings and trade deal announcements will continue to lift stocks after the recent rout.
Still, the bank was quick to emphasize in a note to clients Monday that the rally’s momentum could fade within weeks, with the negative impacts of US tariffs poised to begin dragging on the economy in the months ahead.
“Overall, the de-escalation trade has room to run,” wrote head of global market intelligence Andrew Tyler, adding, however, that “this is not an all clear for markets.”
US stocks churned on Monday, with the S&P 500 Index falling as much as 1% in afternoon trading as the technology-heavy Nasdaq 100 Index’s slide reached 1.4%. The declines come after US equities had their second-best week of 2025 as President Donald Trump touted progress in trade negotiations.
Tyler and his team, who were previously “tactically bearish” on US shares, said that their latest call differs from past bullish views because it’s largely based on technical factors rather than just fundamentals.
“The combination of light positioning, low liquidity, subdued investor participation means that this market is likely to drift higher in the absence of negative news such as tariff headlines or a spike in bond yields,” they wrote.
The potential for an announced trade deal also skews the risk-reward setup positively, they added.
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