J.P. Morgan strategists believe that after the US midterm elections, if the Middle East conflict escalates further, it may drag down the stock market and push up oil prices in the short term, but the impact is likely to be short-lived and will bring opportunities to increase the allocation of risky assets. The team led by Mislav Matejka maintains the view that bond yields have peaked, and economic resilience and strong profits will support the stock market. The strategist said that the recent shift in capital to the defensive sector is unsustainable, and they are optimistic about the recovery of the banking, industrial, commodities, and semiconductor sectors. In terms of investment ratings, increasing holdings in emerging markets and the Eurozone remain neutral to the US market. At the same time, the S&P 500 index is expected to reach a new high before the end of the year.

J.P. Morgan strategists believe that after the US midterm elections, if the Middle East conflict escalates further, it may drag down the stock market and push up oil prices in the short term, but the impact is likely to be short-lived and will bring opportunities to increase the allocation of risky assets. The team led by Mislav Matejka maintains the view that bond yields have peaked, and economic resilience and strong profits will support the stock market. The strategist said that the recent shift in capital to the defensive sector is unsustainable, and they are optimistic about the recovery of the banking, industrial, commodities, and semiconductor sectors. In terms of investment ratings, increasing holdings in emerging markets and the Eurozone remain neutral to the US market. At the same time, the S&P 500 index is expected to reach a new high before the end of the year.