JPMorgan warned that global major stock indexes remain in an uptrend, but markets may face a pullback risk in late summer to early fall. According to Odaily, the bank said U.S. market internals have recently deteriorated, money is shifting toward defensive assets, and investor confidence in AI-related stocks has weakened.

JPMorgan strategist Jason Hunter said the current AI trading frenzy resembles the 1999-2000 tech bubble, with excessive concentration in technology holdings increasing the risk of a correction. The bank also cited rising U.S. Treasury yields, geopolitical tensions in the Middle East, and slowing consumer spending as potential sources of market pressure.

JPMorgan said the current AI investment cycle still has long-term growth potential, but near-term valuations, crowded positioning, and investor expectations could make technology stocks more volatile.