JPMorgan tells clients to ‘buy the dip’ as bull market stays intact
JPMorgan analysts said they continue to view any market pullback as a buying opportunity through 2026, arguing that solid growth, strong earnings, and fading headwinds will keep the equity rally alive.
In a note led by Andrew Tyler, head of the bank’s market intelligence team, the analysts said they would be “dip-buyers into year-end,” adding that the S&P 500 could ‘blast through’ 7,000 in the near term, roughly 3% above current levels.
Why JPMorgan stays bullish:
1. A resilient US economy
Growth remains strong despite shutdown-related data gaps.
Private payrolls rose 42,000 in October, better than expected, signalling stabilisation in hiring.
While layoffs rose to 153,000 — the worst October in 22 years — JPMorgan said they remain insufficient to materially raise unemployment.
Services PMI at 52.4 implies around 2.5% GDP growth, and the Atlanta Fed’s GDPNow model points to ~4% Q3 growth, well above trend.
2. Strong corporate earnings
83% of S&P 500 companies reporting through October beat expectations — the best showing since 2021, according to FactSet.
other analysts have noted Q3 results rank among the top 10 out of 155 earnings seasons since 1987, underscoring corporate resilience.
3. Fading headwinds
Tariffs: The Supreme Court is expected to rule on President Trump’s tariff authority by 2026, potentially easing uncertainty.
Trade tensions are ‘thawing’, with more deals emerging and policy clarity improving.
Government shutdown: JPMorgan said reopening the government could inject liquidity that lifts risk assets and triggers a short-term squeeze in recently hit sectors.
The analysts concluded that despite concerns about AI-driven valuations, the broader bull market remains intact, supported by earnings momentum and macro strength
