JPMorgan Sees Buying Opportunity as Global Equities Pullback

JPMorgan's strategy team believes the recent pullback in global equities is not a cause for concern. The analysts argue that the market has simply digested short-term shocks from rising oil prices and bond yields, rather than reevaluating corporate earnings prospects.

Despite Brent crude breaking above $100 per barrel and US 10-Year Treasury Note yields approaching 5%, the magnitude of the decline remains limited. The S&P 500 is down roughly 2% from its August peak, while the European Stoxx 600 has dropped approximately 3-4% from its record closing high.

The strategists point out that profit margins across the US, Europe, and Japan remain above long-term averages, with second-quarter margins hitting record highs. The proportion of companies globally expected to achieve positive EPS growth in 2026 has climbed above 80%, indicating a strong corporate earnings momentum.