JPMorgan Trading Division: US Stocks May See a Near-Term Pullback, Favoring Buy-the-Dip Opportunities

As rising geopolitical tensions put pressure on U.S. stocks, JPMorgan's trading division has stated that any potential future pullback will present buying opportunities, and the long-term bullish case for U.S. equities remains intact. Led by Global Market Intelligence Head Andrew Tyler, the traders have shifted from a tactically bullish stance on U.S. stocks to a more cautious position, but note that the increased likelihood of a pullback will create "buy the dip" moments. They recommend adopting a defensive approach, including going long on the U.S. tech 'Magnificent Seven', metals and mining, healthcare, as well as aerospace and defense-related stocks. "Given the rapidly evolving geopolitical situation and the approaching expiration of trade agreements," they wrote, "it appears the market is likely to see a short-term pullback." Assuming longer-term tariff relief continues, the bullish case remains valid. However, they advise caution until there is greater clarity regarding U.S. involvement in Middle Eastern affairs.