JPMorgan Sees Equity Indexes Hitting New Highs in 2H as Rally Broadens Beyond Tech
Updated
Updated · Yahoo Finance · Aug 14
JPMorgan Sees Equity Indexes Hitting New Highs in 2H as Rally Broadens Beyond Tech
3 articles · Updated · Yahoo Finance · Aug 14
Summary
JPMorgan said major equity benchmarks should post fresh all-time highs in the second half, maintaining a bullish stance despite recent investor worries.
The bank argued geopolitics, inflation fears, narrow market leadership and the bond selloff are unlikely to derail stocks because the broader macro backdrop still supports gains.
About 2 months into a rotation beneath the headline indexes, JPMorgan expects cyclical and higher-beta shares to take a larger role, with technology no longer dominating as it did last summer.
Volatility may stay elevated as profitability concerns resurface, but JPMorgan said the setup still differs from 2022 because inflation pressure looks limited and central banks are unlikely to tighten much more.
A softer U.S. labor market adds to the mixed backdrop, yet the bank sees that as consistent with a market advance that becomes less concentrated across sectors and styles.