J.P. Morgan: There may be a moderate correction in US stocks, but it is difficult for a pullback of more than 10%;

① J.P. Morgan believes that if the economic data falls short of expectations, there may be a moderate correction in the stock market in the next few weeks. Many market watchers have warned of a possible pullback, and corporate insiders have begun selling stocks. John Normand and other strategists of J.P. Morgan said in a report that the worst situation may have passed shortly after the stock market bottomed out in March, and there are currently no conditions for a sharp pullback;

② The strategist said that since demand is being suppressed and that more fiscal stimulus plans will eventually pass through the National Assembly to keep the economy above the trend, it is unlikely that the stock market will fall sharply. When the stock position indicators of most hedge funds and balanced bonds/mutual funds are below average, it is difficult to see a sharp correction of about 10%;

③ However, these strategists warned that the non-farm payroll report and retail sales data at the beginning of the month presented a moderate risk that fell short of expectations. The slowdown in US economic growth and the expiration of unemployment benefits retained the risk of an August market correction, but given investors' positions, the decline should be limited