JPMorgan: Range-Bound S&P 500 Could Spell Trouble For U.S. Equities
- Flight-to-quality rally in Treasuries seen if stocks crack
- Nasdaq 100 can offer clues to next ‘material correction’
Stephen Suttmeier, chief equity technical strategist at Bank of America Merrill Lynch, and Bob Michele, global head of fixed income at JPMorgan Asset Management, discuss the outlook for markets. They speak with Bloomberg's Alix Steel and Jonathan Ferro on 'Bloomberg Daybreak: Americas.' (Source: Bloomberg)
For once, stability in stocks might be a bad thing. Technical analysts at JPMorgan Chase & Co. say that if the S&P 500 can’t escape its 2,400 to 2,500 range, it could spell trouble for U.S. equities heading into September.
Amid the slew of headline risks -- including Washington turmoil, North Korea tension, and monetary policy shifts -- the last two weeks’ price declines and initial volatility spikes from extreme low levels highlight stocks’ vulnerability, raising the prospect of a flight to Treasuries, according to strategists including Jason Hunter and Alix Tepper.