(Bloomberg) — After US technology shares endured their worst drop since late 2022, pummeling the broader market, the trading desk of JPMorgan Chase & Co. is predicting the downdraft will be short-lived.
The slide across chipmakers on Wednesday that dragged the Nasdaq 100 Stock Index down 2.9%, its biggest decline in 19 months, was a “massive overreaction” spurred by geopolitical fears, according to Andrew Tyler, the bank’s head of US Market Intelligence.
“That is taking the market lower but think that rebounds over the next 1-2 weeks,” he wrote in a client note early Thursday, responding to questions he said he’s received about whether the bull run is over and a correction is beginning.
Chipmakers extended losses after the Philadelphia Semiconductor Index logged its biggest one-day drop since October 2022 amid a growing risk of tougher trade restrictions on chip companies and an ongoing rotation away from larger-cap names.
