JPMorgan Chase strategist Fabio Bassi noted in a client report that the bank expects equities to grind higher, driven by sector rotation rather than a broad-based rally. JPMorgan Chase continues to favor quality growth and mega-cap companies, and is bullish on semiconductor stocks after their recent repricing. The bank believes that the steepening of developed market bond yield curves reflects increased demand for capital and investment opportunities, rather than concerns about monetary policy missteps. JPMorgan Chase does not view recent bond market movements as signaling a broad-based flight to safety in financial markets.