JPMorgan’s clients are really worried about the stock market right now. According to a note from the bank’s equity trading desk, “the chants from the bears are getting louder and louder … that’s what’s happening right now … My clients have gone from cautious to full blown bearish in a very short period.” Indeed, plenty of risks remain to the rally that pushed stocks to records as recently as Monday. Chief among them: Talks between the U.S. and Iran appear stalled after President Donald Trump said this week that a ceasefire between the two nations was on “life support.” Now, on top of that, inflation is pushing higher too. But JPMorgan traders have a simple message for their worried clients: calm down. .SPX YTD mountain S & P 500 year to date The bank remains “Tactically Bullish driven by (i) resilient macro environment led by the consumer; (ii) strong earnings; (iii) renewed Tech interest that should keep U.S. indices at/near the top among [developed markets] (iv) potential for Xi-Trump agreements that reduce tensions/costs; and (v) a deal that reopens the [Strait of Hormuz].” Options market activity also points to further upside. Amy Wu Silverman of Royal Bank of Canada told CNBC on Tuesday she sees “historic” call options buying at the moment. JPMorgan also noted that the consumer remains in good shape thanks to tailwinds from the One Big Beautiful Bill Act. “We think the bull case holds until there is a change in fundamentals or an extreme change in positioning,” traders at the bank said.
