JPMorgan's Global Market Intelligence Head, Andrew Tyler, has shifted from a bearish to a bullish outlook on U.S. stocks, citing easing trade tensions. This change comes after a strong performance by U.S. stocks, marking the second-best weekly performance in 2025. Tyler anticipates that upcoming earnings reports from major tech companies could further boost the market.
Despite the optimism, Tyler warns that the rally's momentum might weaken in a few weeks, as the negative effects of U.S. tariffs could start impacting the economy in the coming months. The shift in JPMorgan's stance also considers technical factors, such as low liquidity and investor participation, which could sustain the market's upward trend in the absence of negative tariff news or surging bond yields.
Tech giants like Microsoft, Apple, Meta, and Amazon are set to release their earnings, which Tyler's team believes could provide a positive catalyst for the market. However, concerns remain about the potential economic impact of tariffs, which may become more evident by mid-May or early June, according to analysts.
JPMorgan suggests that investors should sell risk assets during market strength instead of chasing momentum, as the narrative needs clearer signals for a complete turnaround.
