J.P. Morgan, Morgan Stanley See Dip as Buying Chance — SkimNews
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- J.P. Morgan said in a note led by strategist Mislav Matejka that further escalation is unlikely and geopolitical dips are buying opportunities.
- Morgan Stanley strategists led by Michael Wilson said the S&P 500 selloff looks more like a correction than a prolonged downturn, citing improving earnings growth and healthier valuations.
- S&P 500 rose nearly 8% from its seven‑month low in March as de‑escalation hopes lifted sentiment, while outpacing Europe’s STOXX 600, which fell over 11%.
- Magnificent Seven stocks saw their forward P/E premium narrow to 1.2× the S&P 500 from 1.7×, indicating a reduced valuation gap.
- Goldman Sachs warned of near‑term correction risks to global stocks but noted little room for a bear market.
- LSEG I/B/E/S data showed the S&P 500 earnings growth estimate for Q1 2026 rose to 13.9% as of April 10, up from 12.7% before the war.
Why it matters: Investors gain as the S&P 500’s rebound, higher earnings forecasts, and a tighter Magnificent Seven premium make US equities more attractive, while European and emerging‑market indexes, which have slipped into correction territory, lag behind, reducing their relative appeal for growth‑focused portfolios.
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