JPMorgan Chase trader: Bullish on U.S. stocks in the short term, a new wave of historical highs will emerge

The S&P 500 index in the US stock market broke through and held the 6000-point mark last Friday, setting a new historical high.

According to news from the Chasing Wind Trading Desk, the trading team at JP Morgan has recently assessed that the market is leaning bullish, and after the new high of 6000 points, US stocks are expected to usher in a new wave of historical highs.

Andrew Tyler, head of JP Morgan's market intelligence department, stated that this optimistic expectation is based on multiple favorable factors including improvements in macro data, underestimated corporate earnings expectations, and clearer policies.

By sector, JP Morgan expects that the financial and technology sectors are likely to become the main engines driving the market upward, with financial stocks creating positive momentum first, followed by large tech stocks picking up and accelerating this momentum until NVIDIA's earnings report on August 28.

Tyler added that the current market positioning has not formed upward resistance, and the non-farm payroll data expected to be released this week will provide sufficient support for the market until the positioning adjustments are in place.

JP Morgan Maintains "Tactically Bullish" Stance

JP Morgan's market intelligence team clearly stated that they maintain a "tactically bullish" stance in the short term.

The bank expects that macro data will continue to release optimistic signals, supporting the S&P 500 index to keep refreshing historical highs.

Additionally, the low expectations for the earnings season provide a buffer for corporate performance, with strong performances from the financial sector and tech giants expected to last throughout the earnings season, especially before NVIDIA's earnings report on August 28, where market sentiment may be further ignited, extending into the fourth quarter.

Furthermore, the team believes that the "tariff deadline" on July 9 will be postponed to avoid market volatility, as the US government is unlikely to allow a severe correction like that of April 9 to reoccur—when the S&P 500 index plummeted 10.8% in two days.

Bearish Arguments "Lack Strength"

In the current market environment, bullish and bearish views stand in stark contrast.

The bullish side believes that the macroeconomic backdrop has significantly improved, and the S&P 500 index has strong momentum after breaking through 6000 points.

Wall Street Insight previously mentioned that JP Morgan pointed out that the continued enthusiasm for AI and the light positioning of investors provide upward space for the market. The Nasdaq index rose 4% last week, while the 10-year US Treasury yield fell by 10 basis points, this "risk appetite" environment is considered a "rather wonderful" signal.

In contrast, the bearish viewpoint appears relatively weak, even being humorously referred to as "the weakest sell reason in history."

Nevertheless, some technical indicators show that there may be resistance in the short term, such as changes in market volatility and overbought signals in certain sectors. However, JP Morgan believes that overall, bearish sentiments are struggling to gain a foothold in the current optimistic atmosphere, lacking strong data support.