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In the view of the analysts at JP Morgan, the US stock markets, including the S&P 500 index, looks bullish in the short to medium term.

Key quotes

“1. Positioning remains light around macro and systematic investors. Seasonality over summer should help the volatility spike continue to fade, which could push investors to further add to stock exposure.

2. Monetary and fiscal policy is supportive. Liquidity has recovered meaningfully from the March lows.

3. Rising coronavirus incidence is mainly impacting younger populations. This demographic has drastically lowered mortality rates (compared with older people) and likely reflects higher testing rates, recent protests, backlogs of hospital visits, and increased economic activity.”