JPMorgan Chase Trading Department: U.S. stocks may be correcting in the near future, optimistic about bargain buying opportunities

As rising geopolitical tensions weigh on U.S. stocks, JPMorgan's trading desk said a potential pullback ahead would present buying opportunities, and the case for a longer-term bullish stance remains intact. Traders, led by Andrew Tyler, head of global market intelligence, switched from a tactical bullish stance on U.S. stocks to a cautious stance, but said the increased likelihood of a pullback would create a "buy-the-dip" moment. A defensive tilt is recommended, including going long the Big Seven in U.S. tech, metals and mining, healthcare, and aerospace and defense-related stocks. "Given the rapidly changing geopolitical situation and the looming expiration date of trade agreements," they wrote. "It looks like the market is set for a pullback in the near term". Assuming longer-term tariff relief is still in the works, the bullish case remains. But until there is more clarity about the extent of U.S. involvement in the Middle East, caution is advised.