JPMorgan Warns of U.S. Stock Market Pullback Risks, AI Frenzy May Repeat Tech Bubble

JPMorgan has warned that despite major global stock indices continuing to rise, the market may face a pullback risk from late summer to early autumn. The bank noted that the internal structure of the U.S. stock market is deteriorating, with funds beginning to shift towards defensive assets and investor confidence in artificial intelligence (AI)-related stocks weakening. JPMorgan strategist Jason Hunter pointed out that the current AI trading frenzy is reminiscent of the tech stock bubble from 1999 to 2000, with excessive concentration in the tech sector increasing the risk of a correction. Persistently rising U.S. Treasury yields, geopolitical tensions in the Middle East, and slowing consumer spending are also seen as potential sources of market pressure. JPMorgan believes that the current AI investment cycle still holds long-term growth potential, but in the short term, market valuations, fund crowding, and investor expectations may lead to greater volatility risks for tech stocks.

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