JPMorgan Chase’s (JPM) trading desk is now tactically bullish on the stock market after the U.S. and Iran agreed to a two-week ceasefire. The firm also expects strong upcoming earnings and highlighted the tech sector as a prime candidate for upside given its discounted valuation.
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Trade QQQ with leverage“This ceasefire should trigger a re-risking potentially similar to the post-Liberation Day pivot,” wrote Andrew Tyler, JPMorgan’s Head of Global Market Intelligence. “How far could this go? Breaching 7,000 feels likely as euphoria returns to markets.”
JPMorgan Sees Strong Q1 Earnings Growth
JPMorgan expects first quarter earnings for the S&P 500 (SPX) to climb 13% year-over-year alongside 10% revenue growth. Within tech, analysts believe that the Magnificent 7 and semiconductor stocks seem “poised to explode higher.”
In the near term, JPMorgan says that consumer cyclical stocks are the most attractive. The firm also expects precious metals to rise if the U.S. dollar weakens.