JPMorgan Says Buy the Dip as Markets Slide

JPMorgan’s trading desk says the latest selloff is finally offering a real buying opportunity. After a four day drop that pulled the S&P 500 down by 3.4%, the bank calls the move a technical washout that may already be ending.

Andrew Tyler, head of global market intelligence at JPMorgan, told clients that the pattern of the bull market remains intact and that the S&P 500 could push toward the 7,000 level in the near term.

Why JPMorgan is turning bullish again

Strong US economy: Private sector hiring picked up with 42,000 new jobs, beating expectations. The service sector stayed in expansion with an ISM reading of 52.4%, consistent with solid GDP growth. The Atlanta Fed now sees Q3 GDP near 4%.

Powerful earnings season: FactSet data shows 83% of S&P 500 companies beat estimates, setting the index on track for its strongest beat rate since 2021. Ed Yardeni called Q3 results one of the strongest earnings seasons in decades.

Headwinds are fading: Tariff policy remains paused, the Supreme Court is questioning presidential authority over duties, and more trade agreements are forming. The government shutdown continues, but JPMorgan expects a burst of liquidity once it ends.

Tyler summed up the bank’s view clearly: This is a bull market and pullbacks like this should be treated as buying opportunities.

Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.