JPMorgan strategists recommend buying equity dips amid earnings rally

JPMorgan’s equity strategy team has a simple message for investors watching market wobbles: keep buying.

Strategists led by Mislav Matejka issued a note recommending that investors treat equity dips as entry points, arguing that strong corporate earnings momentum and improving macroeconomic indicators make the case for staying long. The call comes even as rising global bond yields and persistent inflation concerns have kept plenty of market participants on edge.

The earnings case for buying dips

At the core of JPMorgan’s argument is profit growth. The team points to improving profit revisions as the engine that should keep equities attractive, even during short-term selloffs. The logic is straightforward: when earnings estimates move higher, they effectively compress price-to-earnings ratios during pullbacks, making stocks look cheaper precisely when sentiment turns sour.

This isn’t a one-off call from the JPMorgan team. The “buy the dip” recommendation has been a recurring theme from the bank throughout 2026, consistently tied to the resilience of corporate earnings rather than to any single catalyst or geopolitical event. Where other analysts have urged caution in the face of macro headwinds, Matejka’s team has stayed notably bullish.

Manufacturing data backs the thesis

JPMorgan’s strategists also highlighted that manufacturing indicators in both the US and the euro area are running near four-year highs. That’s a meaningful data point for anyone trying to gauge the health of the real economy underneath the financial markets.

The bond yield problem (and why JPMorgan thinks it’s manageable)

The obvious counterargument to this bullish stance is the bond market. Rising global yields have been the primary source of anxiety for equity investors, and for good reason. Higher yields increase the discount rate applied to future corporate earnings, which in theory should push stock valuations lower. They also make fixed income more competitive as an alternative to equities.

JPMorgan’s team isn’t dismissing this risk entirely. But their framework essentially argues that earnings growth is running hot enough to outpace the valuation headwind from higher rates.

What this means for positioning

For investors trying to translate this call into actionable strategy, the message is to stay focused on earnings quality and to treat volatility as a feature rather than a bug. Pullbacks driven by yield spikes or inflation headlines, in JPMorgan’s view, are noise relative to the underlying profit cycle.

The upcoming earnings season becomes the critical test. If companies continue to deliver results that justify the optimism baked into JPMorgan’s outlook, the dip-buying playbook should hold.

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