JPMorgan: AI Sector Unlikely to Be Key Driver of Returns in the Second Half of the Year

BlockBeats News, August 3rd, JPMorgan Chase strategists believe that as the market performance spreads to more sectors, tech stocks or AI-related stocks are unlikely to be the main driver of market returns in the second half of the year. Led by Mislav Matejka, the team stated that the selling pressure from momentum trades has mostly subsided, and semiconductor stocks are currently approaching oversold levels. The team wrote in the report: "As earnings momentum remains positive, this should help stabilize the related stocks." However, they expect the market performance to continue to spread to more sectors and reiterate their advice for investors to buy on dips due to heightened geopolitical tensions.