JPMorgan Turns Bullish on US Stocks, Focuses on Tech Sector

JPMorgan has ended its tactical neutral stance on US stocks ahead of the September non-farm payroll report, shifting back to a bullish outlook. The bank believes that US economic activity is stronger than expected, consumers are resilient, and corporate earnings are growing steadily. Additionally, bond yields may gradually find a new equilibrium, making the short-term environment for US stocks more favorable than before. Andrew Tyler, head of US market intelligence at JPMorgan, stated that as bond yields stabilize, oil prices, while still volatile, may gradually decline, improving the market's outlook. He believes that economic growth and corporate earnings are still sufficient to support risk assets. This marks a significant shift for JPMorgan's trading desk in the past month; at the end of August, due to hawkish signals from Federal Reserve Chairman Waller, the market raised interest rate expectations, prompting Tyler to downgrade his tactical assessment of US stocks at that time. Earlier, he had turned cautious in early June, after which US stocks experienced several weeks of adjustment.

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