JPMorgan Chase Warns: S&P 500 Could Face Sell-Off in Autumn, Citing AI Stock Divergence Similar to Dot-Com Bust
JPMorgan Chase technical strategist Jason Hunter points to deteriorating market internals, a lack of conviction in the tech/AI leadership rotation, rising government bond yields, and a defensive shift as harbingers of market weakness in late summer and early fall. He emphasizes the growing divergence between AI hardware/chip manufacturers and companies with heavy AI capital expenditures, which is similar to market behavior before the tech stock crash of 1999-2000. The firm's team favors five defensive sectors and recommends defensive stocks including GE Vernova (target price $1,330) and Bristol Myers Squibb (target price $73, with a dividend yield of nearly 4%).
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