JPMorgan Warns of Autumn Stock Downturn as S&P 500 Heads for 1.9% Weekly Drop
Updated
Updated · CNBC · Aug 21
JPMorgan Warns of Autumn Stock Downturn as S&P 500 Heads for 1.9% Weekly Drop
3 articles · Updated · CNBC · Aug 21
Summary
JPMorgan said U.S. stocks face a higher risk of a late-summer to early-fall downturn, even though broad indexes still look technically bullish on the surface.
Jason Hunter pointed to weakening market internals, uneven rotation out of crowded AI trades and a shift toward more defensive areas rather than the pro-cyclical broadening seen in late 2025.
AI shares are showing patterns JPMorgan says resemble the 1999-2000 tech peak, with the broader basket still below key 2026 resistance as the post-Labor Day period approaches.
The warning comes with the S&P 500 down 1.9% for the week, pressured by higher Treasury yields, Middle East war uncertainty and signs of slower consumer spending.