J.P. Morgan said that US and European companies' profits are rising and manufacturing data are improving, creating a favorable environment for the stock market, and they should buy when the market recovers. A team of strategists led by Mislav Matejka wrote that the regional profit gap is narrowing, and non-US stocks are expected to outperform US stocks for the second year in a row. Emerging market stocks are expected to outperform developed market equities. Future returns will not be dominated by the artificial intelligence sector, but semiconductor stocks have stabilized, supporting the relative performance of emerging markets. The report points out that current stock positions in emerging markets are low, and capital inflows are expected to pick up again, recreating the trend of capital inflows at the beginning of the year. The strategist said that as long as inflation expectations are not unanchored, rising bond yields and the central bank's moderate policy tightening are unlikely to disrupt the positive pattern of the stock market.

J.P. Morgan said that US and European companies' profits are rising and manufacturing data are improving, creating a favorable environment for the stock market, and they should buy when the market recovers. A team of strategists led by Mislav Matejka wrote that the regional profit gap is narrowing, and non-US stocks are expected to outperform US stocks for the second year in a row. Emerging market stocks are expected to outperform developed market equities. Future returns will not be dominated by the artificial intelligence sector, but semiconductor stocks have stabilized, supporting the relative performance of emerging markets. The report points out that current stock positions in emerging markets are low, and capital inflows are expected to pick up again, recreating the trend of capital inflows at the beginning of the year. The strategist said that as long as inflation expectations are not unanchored, rising bond yields and the central bank's moderate policy tightening are unlikely to disrupt the positive pattern of the stock market.