JPMorgan Chase & Co.’s trading desk shifted to a tactically bearish stance on U.S. equities. Escalating geopolitical tensions in the Middle East and rising oil prices drove the change in sentiment.
Andrew Tyler, head of global market intelligence, warned that investors are underprepared for a potential 10% correction in the S&P 500. Rising oil prices present a significant risk of a supply shock to the market.
This cautious outlook remains a short-term tactical call. The bank maintains its long-term bullish view on U.S. stocks pending a resolution of the regional conflict.