JPMorgan Trading Desk: The technical correction in US stocks may be over, now is the time to buy the dips.
TL;DR
JPMorgan's trading desk suggests the recent US stock decline, driven by AI rally concerns and Fed policy, may be over. With fundamentals unchanged, now is a good time to buy on dips.
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On November 20, JPMorgan Chase's trading arm stated that the longest losing streak for U.S. stocks since August has created opportunities for bargain hunters. The S&P 500 fell for four consecutive days, accumulating a 3.4% decline by Tuesday's close, due to investor concerns about the sustainability of the artificial intelligence rally and the Federal Reserve's monetary policy path.
Andrew Tyler, global head of market intelligence at JPMorgan Chase, said the recent pullback represents a "technical shakeout" in the stock market, and the adjustment period may be over.
"Given that the fundamentals have not changed and our investment assumptions do not rely on the Fed easing policy, now is the time to buy on dips," Tyler wrote in a report to clients on Wednesday. (Jinshi)