JPMorgan's trading division indicates that positive news from major tech earnings reports and trade agreements could lead to a short-term rebound in U.S. stocks. However, they caution that this rally may be short-lived due to potential negative impacts from U.S. tariffs on the economy in the coming months.
Global Market Intelligence Chief Andrew Tyler notes there is still room for easing trade tensions, but the market is not entirely free from risk. Recently, the S&P 500 dipped 1%, and the Nasdaq 100 fell 1.4%, following optimistic statements from President Trump about trade negotiations.
Tyler describes their current position as "tactically bullish" due to technical factors, differing from a fundamental bullish stance. In a low liquidity environment with low investor participation, positive news like trade deals could boost market sentiment.
This week, tech giants such as Microsoft (MSFT), Apple (AAPL, Financial), Meta (META), and Amazon (AMZN) are set to release earnings reports. These companies, including Alphabet (GOOGL), Tesla (TSLA), and NVIDIA (NVDA), are expected to achieve an average EPS growth rate of 15% by 2025.
While trade tensions remain a concern, Wall Street expects a weakening U.S. economy. The upcoming non-farm payroll report is seen as a critical test for the market.
