JPMorgan urges buying dips as S&P 500 hits record
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- JPMorgan’s chief global strategist Mislav Matejka and his team recommended investors keep buying dips even as the S&P 500 hits a record high.
- S&P 500 closed at a record high for the ninth time this year, down 1.56% on the day.
- Emerging‑market stocks such as VXUS and EEM are expected to outperform U.S. equities, according to the strategists.
- Central banks are unlikely to raise rates further, as inflation is trending lower around 4% and they are not expected to hike amid geopolitical energy shocks.
- Semiconductor sector (SOX) remains overweight despite a 6% drop, reflecting continued optimism about AI‑driven demand.
- Iran war is cited as a headline risk, but the strategists argue that market weakness from the conflict should be used to add positions.
- Magnificent Seven stocks may not dominate the rebound; leadership could broaden to value and small‑cap stocks.
Why it matters: Investors who follow the dip‑buying call will be positioned to capture a broader rebound across value, small‑cap, and emerging‑market stocks as JPMorgan expects lower inflation and a pause in rate hikes, while those who stay out risk missing the upside.
