JPMorgan trading desk says it is moving back to 'tactically bullish', stating that the ceasefire should drive re-risking and make a move above 7,000 in SPX likely
- SPX also likely to be supported by earnings and lower tech valuations
- JPM strategists say that Strait of Hormuz reopening, a possible two-week extension and normalising oil flows may ease inflation pressures, though residual geopolitical risk and subsequent consumer impact remains
- Adds that it will take time to play out in the data, so tells clients to watch data on jobs and consumer spending, as well as incremental fundamental improvements
Context
JPMorgan's trading desk is shifting to a 'tactically bullish' stance, driven by a ceasefire that could encourage investors to re-risk, particularly eyeing a move above 7,000 in the S&P 500. While easing tensions in the Strait of Hormuz may alleviate inflation concerns, the strategists caution that lingering geopolitical risks and their effects on consumer behavior warrant close monitoring of upcoming economic data.
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