Wall Street brokerages JPMorgan and Morgan Stanley said recent market weakness has created opportunities for long-term investors, arguing that resilient corporate earnings growth could cushion the fallout from the Middle East conflict.
Morgan Stanley strategists led by Michael Wilson said the recent selloff in the U.S. S&P 500 looked more like a correction than the start of a prolonged downturn, and attributed the support to improving earnings growth and healthier valuations.
Earnings expectations have continued to increase despite the conflict. The earnings growth rate estimate for the S&P 500 stood at 13.9% for the first quarter of 2026 as of April 10, compared with estimates of a 12.7% rise before the war broke out, per LSEG I/B/E/S data.
Goldman Sachs struck a similar tone in early March, warning of near-term "correction risks" to global stocks but saying there was little room for a bear market.
JPMorgan also noted that the valuation premium for the so-called "Magnificent Seven" cohort of stocks had narrowed sharply, with their forward price-to-earnings ratio for the group falling to 1.2x the S&P 500 from 1.7x.
J.P.Morgan, Morgan Stanley urge buying the dip as US earnings stay resilient
byu/app1310 instocks
Posted by app1310
9 Comments
“Please give us exit liquidity.”
what dip we are near ATH
Hold this bag
They wouldn’t need you to buy if they could make money on it.
So beginner here:
But an entity with as much capital as a bank would want to load up on these undervalued assets, and not alert the public to such a thing, no?
It feels kinda like an oil company scanning the ground and saying “theres a lot oil here” while not having the rights to said oil already procured.
Wasn’t Jamie just voicing concerns last week? These clowns are all over the place
Also them
https://finance.yahoo.com/news/morgan-stanley-ceo-warns-potential-114630093.html
…what dip?
Look at how resilient earnings are guys!
Except for we have had almost exactly zero earnings since the war started.