JPMorgan Chase, HSBC: Market correction provides a window for positioning, not a trend reversal

BlockBeats news, July 6: As the year enters the second half, multiple Wall Street institutions believe that the recent market pullback is more of a chance to reposition than a reversal of the trend. Both JPMorgan and HSBC say that near-term fluctuations in global stock markets will not change the overall upward outlook, but the two institutions differ in their specific positioning directions.

JPMorgan’s global and European equities strategy head, Mislav Matejka, and his team said that since the outbreak of the Iran conflict, they have stuck to the view of “buying on dips.” The firm believes that the global economy still has resilience, the situation in the Middle East has not clearly undermined economic growth, and central banks have not shifted toward more aggressive tightening policies. Strategists expect both global stock markets and emerging-market stock markets to set new highs in the future, and believe that the attractiveness of international markets is increasing. They also say that after recent adjustments, the Korean market is worth positioning for at lower levels.

In the industry space, JPMorgan believes that after the recent pullback, the Philadelphia Semiconductor Index has once again presented a buying opportunity, but it remains relatively cautious about large U.S. tech stocks. The firm recommends caution regarding AI “cannibalization industries,” including software, business services, and media sectors. By contrast, after recent adjustments, the basic resources sector has regained value for allocation, and gold has also begun to look more attractive. Strategists also noted that investors’ overall positioning remains cautious, with the market holding a large amount of cash; if there is a phase of pullback during the summer, funds are expected to flow back into the stock market.

HSBC’s multi-asset strategy head, Max Kettner, is more focused on repair opportunities for leading AI companies. He said the market is entering a summer uptrend from July to August, and that AI hyperscale cloud service providers had previously accumulated a pullback of about 20%, with the decline already being excessive. Kettner believes that market expectations for these companies’ earnings have already been sharply lowered, and these firms still maintain strong profitability. If, in the future, it can be shown that massive AI capital expenditures are gradually being converted into revenue, it will further drive valuation repair.