JPMorgan traders turn cautious on stocks amid market volatility

JPMorgan traders have adopted a more cautious stance on stocks as recent swings in bonds and technology shares have unsettled markets. In a Monday note, the bank’s trading desk said it is tactically cautious in the near term, even though it still sees solid underlying support from corporate earnings and the broader economy. Traders pointed to Friday’s sharp selloff, when the S&P 500 fell more than 2.6% and the Nasdaq dropped 4% after a steep decline in chip stocks. The desk said further pressure could come from continued weakness in technology shares and from this week’s inflation data, which may affect Treasury yields. For now, JPMorgan said it prefers value and defensive sectors such as consumer staples, utilities, and energy over growth stocks, while still viewing pullbacks as opportunities to buy gradually rather than all at once.