Why the AI trade is not set up for a rebound like July’s, according to JPMorgan

Why the AI trade is not set up for a rebound like July’s, according to JPMorgan Why the AI trade is not set up for a rebound like July’s, according to JPMorgan The buy-the-dip impulse of late July seems less apparent during this drawdown Investors are questioning the growth profile of the AI infrastructure boom July was an ugly month for artificial-intelligence stocks but the correction was short-lived and the rebound fast and meaningful. October has also been an ugly month for the sector but this time around, JPMorgan’s global strategy team does not anticipate a recovery anywhere near as speedy and emphatic. Nikolaos Panigirtzoglou is telling investors that the buy-the-dip mentality is lacking, company buybacks have dwindled, there are fewer short positions in the market to provide a bid when share prices are falling and there are more leveraged assets sitting in exchange-traded funds than there were previously.

Copyright ©2026 MarketWatch, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8 Rocket Lab’s stock slides as the company pushes back Neutron’s first launch Anthropic’s slowing growth could be the AI trade’s latest red flag The AI trade is splintering as inflation fears rattle hyped-up tech stocks My sister moved in with our mother, 78, and says she deserves the $925,000 family home. You’re probably too invested in equities.

Why a 60-40 portfolio is still the smart way to go. Jules Rimmer is a markets reporter in London. Rimmer spent more than 30 years as a trader and stockbroker, starting at Salomon Brothers in the “Liar's Poker” era, taking in ING Barings, Jefferies and ending it in emerging markets at Investec.

He hung up his headset and pivoted to journalism in 2021. Intraday Data provided by FACTSET and subject to terms of use. Historical and current end-of-day data provided by FACTSET.

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