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