"The Worst Phase is Over"... Optimism Breezes Through Wall Street [Issue+]

Many Major U.S. Securities Firms

"Another Sharp Decline Unlikely"

Major U.S. indices, which had been falling sharply, rebounded on the 24th (local time), raising expectations on Wall Street that the selling pressure has subsided.

According to Bloomberg News, strategists from JPMorgan Chase, Morgan Stanley, and Evercore ISI advised clients that the worst phase of the recent stock sell-off seems to be over, based on indicators such as market sentiment, investment positions, and seasonality.

Amid the uncertainty of the Trump administration's tariff policy, the S&P 500 index fell 10.1% from its peak on the 19th of last month to the 13th of this month, entering a technical correction phase at the seventh-fastest pace in U.S. stock market history since 1929.

The S&P 500 index continued to fluctuate and rose 1.76% on the 24th. A Wall Street Journal report suggesting that President Donald Trump might not impose tariffs on some countries regarding the mutual tariff announcement scheduled for April 2nd acted as a positive factor.

JPMorgan strategist Dubravko Lakos-Bujas and others evaluated on the 21st that "the recent sharp decline has somewhat entered a concluding phase," and "the risk of another sharp market decline in the short term is low." Morgan Stanley strategist Michael Wilson also predicted a stock market rally soon, citing seasonal factors, a weak dollar, U.S. Treasury yield movements, and excessive market pessimism.

Julian Emanuel, chief strategist at Evercore, said, "The market sentiment is very negative due to the remarks of Trump administration officials," but also noted, "The two steps back we experienced are in the process of being resolved, and there is a high possibility of advancing three steps forward at higher prices."

However, the market remains cautious about whether it is a good time for bargain hunting, citing tariff uncertainties, concerns about a U.S. economic recession, and the possibility of an artificial intelligence (AI) bubble. Bank of America strategist Savita Subramanian and others advised, "The possibility of stagflation is low," but also recommended, "In such a situation, it's good to invest in safe dividend stocks or blue-chip stocks."

Reporter Jonghyun Song scream@hankyung.com