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JPMorgan targets two weak IPO stocks for a potential rebound
JPMorgan ties its rebound view to how geopolitical risk, including Middle East tensions, could cool off and unwind earlier moves in oil, inflation expectations, bond yields, and the USD.
Geopolitical tensions in the Middle East have reignited worries about oil prices, inflation, and the broader global economic outlook, but investors appear to be containing the expected impact on risk assets, with the S&P 500 still within 2% of its all time high, according to Yahoo Finance. JPMorgan’s Head of Global and European Equity Strategy, Mislav Matejka, said investors may continue to use market weakness tied to geopolitical headlines to add to equity exposure while staying anchored to longer term fundamentals.
Matejka argued that earlier calls to buy dips linked to the Iran conflict remain relevant because the path toward an “off ramp” and eventual deal was still viewed as likely. He also warned that renewed flare ups are still a risk, but suggested that if markets keep pricing out the conflict impact, a range of indicators that moved higher in Q2 could reverse, including oil prices, inflation rates, inflation expectations, bond yields, central bank rate projections, and the USD.
Yahoo Finance said JPMorgan is also highlighting two newly public, IPO related stocks that had a rocky start but may be positioned for a rebound. One of the companies profiled is ERock, described as an online power solutions provider at utility grade scale that serves customers including data centers, utilities, healthcare systems, manufacturers, and government agencies.
The article notes ERock’s emphasis on delivering scalable energy infrastructure for demand that is independent of regular power grids, and it characterizes the business as a turnkey provider, offering customers energy delivery solutions designed to fit a fast growing market.
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