JPMorgan stays bullish, sees U.S. government reopening and NVDA earnings as key near-term catalysts
JPMorgan strategists reiterated their tactical bullish stance on equities, calling the recent pullback a buying opportunity ahead of several potential tailwinds, including the likely reopening of the U.S. government.
In a note to clients, the bank said a resolution to the shutdown would “buttress current-quarter GDP forecasts” and could release additional liquidity into markets, typically a supportive factor for stocks. Stronger near-term liquidity and improving growth momentum underpinned their constructive view.
Another focus is Nvidia’s upcoming earnings, which JPMorgan expects could reassure investors about the durability of the AI-driven growth theme and help sustain this quarter’s revenue and EPS outperformance across the tech sector.
The strategists also see the Federal Reserve delivering another 25bp rate cut in December, barring a surprise surge in hiring, while elevated corporate buyback activity should continue to bolster market support.
However, JPMorgan cautioned that risks to its view include a miss on Nvidia’s results, an extended government shutdown, weaker-than-expected buyback execution, or a renewed spike in bond volatility and yields. Even so, the bank said overall positioning remains light and retail investor participation subdued — conditions that could amplify the upside if sentiment turns.
