JP Morgan strategist: US stocks may face challenges in the next six months

On January 6th, Jinshi data, Morgan Stanley strategists said that with the surge in US bond yields and the rise in the US dollar, the US stock market may face a severe test in the next six months. Strategist Michael Wilson warned in the report that as the yield on the 10-year US Treasury bonds climbed above 4.5%, the correlation between the S&P 500 index and bond yields has become a "decisive negative correlation." The 30-year yield hit its highest level since the end of 2023 on Monday. Wilson said the dollar is currently approaching levels that could put pressure on companies with a large international exposure, and given the poor market breadth, this could cause more widespread damage to the stock market in the first half of this year. Wilson was once one of Wall Street's biggest bearish voices until the mid-2024, when he turned bullish on the stock market. While he expects the S&P 500 index to Rebound this year, he warns that the rise in the S&P 500 index is not broad enough.