JPMorgan Warns of Autumn Pullback Risk in U.S. Stocks, AI Hype May Echo 2000 Tech Bubble

Odaily News JPMorgan has warned that despite global major stock indices remaining in an uptrend, markets could face a pullback risk from late summer into early autumn. The bank noted that the internal structure of the U.S. stock market has been deteriorating recently, with capital rotating into defensive assets and investor confidence in artificial intelligence (AI)-related stocks weakening. JPMorgan strategist Jason Hunter pointed out that the current AI trading frenzy bears similarities to the tech stock bubble of 1999–2000, and that overheated positioning in the tech sector could heighten the risk of a correction.

In addition, persistently rising U.S. Treasury yields, geopolitical tensions in the Middle East, and a slowdown in consumer spending were also cited by JPMorgan as potential sources of market pressure.

JPMorgan believes that the current AI investment cycle still holds long-term growth potential, but in the near term, market valuations, crowded positioning, and investor expectations could expose tech stocks to greater volatility risk.