Headline: JPMorgan Sees Stocks Poised for Upside as Government Reopening, Nvidia Earnings Loom
JPMorgan strategists remain constructive on U.S. equities, framing the latest market dip as a buying opportunity. They point to two near-term catalysts—resolution of the U.S. government shutdown and Nvidia’s upcoming earnings—that could lift risk appetite and support the ongoing rally.
According to the bank, a government reopening would likely boost current-quarter GDP estimates and inject fresh liquidity into markets, a combination that typically benefits equities. Improving growth momentum and stronger near-term liquidity underpin their bullish stance. The team also expects Nvidia’s results to reinforce confidence in the AI-led growth cycle, helping sustain revenue and EPS outperformance across the technology sector.
JPMorgan adds that a 25-basis-point Federal Reserve rate cut in December remains its base case, unless labor market data surprises to the upside. Elevated corporate buybacks should continue to provide a backstop for stocks. Risks include a disappointing Nvidia print, a protracted shutdown, softer buyback execution, and a renewed flare-up in bond yields and volatility. Even so, with positioning still light and retail participation muted, a turn in sentiment could amplify gains.
Key Points: – JPMorgan reiterates a tactical bullish outlook on equities after the recent pullback – Potential U.S. government reopening seen as supportive for GDP and market liquidity – Nvidia (NVDA) earnings viewed as a key test for the AI-driven growth narrative – Base case calls for a 25bp Fed rate cut in December, absent a hiring surprise – Elevated corporate buybacks expected to underpin market support – Risks: Nvidia miss, prolonged shutdown, weaker buybacks, and rising bond volatility and yields
Last updated on November 11th, 2025 at 03:07 am
