JPMorgan analysts advise investors to buy market dips, citing strong corporate earnings momentum as a critical counterweight to rising bond yields and persistent inflation pressures.
Higher oil prices linked to the war in Iran are adding to inflation concerns, but the article does not provide a directional view on oil itself.
JPMorgan says rising bond yields unlikely to derail equities as earnings momentum continues, suggesting a bullish outlook for the S&P 500.
ECB expected to raise rates, which could strengthen the euro against the dollar.
JPMorgan analysts maintain a constructive outlook for equities, arguing that robust corporate earnings growth will offset macroeconomic headwinds. While rising bond yields and oil price shocks linked to the war in Iran fuel inflation concerns, the bank suggests that anchored expectations and a recovery in non-tech capital expenditure provide a buffer for the S&P 500.
JPMorgan argues that unlike 2022, current corporate profits are on an uptrend, providing a fundamental cushion that allows for lower valuations without necessarily triggering a sustained price collapse.