Friday’s big decline has JPMorgan traders telling clients to buy the dip, but not without protection. “We are of the view that investors should buy the dip as we maintain our Tactical Bullish view but think it prudent to exercise cautious in the very near-term,” they said in a note to clients. “Our bullish view is guided by (i) resilient macro data, (ii) positive earnings growth where expectations could increase materially if Banks do well this week; and (iii) the potential for de-escalation in the trade war not just US / China but US / EU, US / UK, and US / Canada.” President Donald Trump sent stocks tumbling on Friday after he threatened to hit Chinese imports with a “massive” tariff hike. That Truth Social post sent the S & P 500 plummeting 2.7%, marking its worst day since April 10, when it tumbled nearly 3.5%. .SPX 5D mountain SPX 5-day chart Trump alleviated investor concerns with another social media post on Sunday, noting everything related to China will “be fine.” Stock futures rebounded Monday , signaling sharp gains at the open. On top of that, “given the magnitude of Friday’s moves with many sectors and sub-sectors having 2-3 standard deviation moves, the market usually rebounds the next trading session as investors assess whether that move is a deadcat bounce or a local bottom,” JPMorgan’s trading desk said. That said, JPMorgan thinks investors should also protect themselves given the uncertainty that persists. Here are some of the hedges they highlighted: Buying index puts or put spreads “Texas hedges” such as gold and silver, both of which hit fresh record highs on Monday Play “Snap Back” plays such as energy, semiconductors and banks — via options Others on Wall Street were suggesting to clients this was a dip to be bought. “The underlying tensions and uncertainty remain, and we still don’t think an all-encompassing deal is anywhere close, but this tamps down concerns about the risk of 100% tariffs or disruptive export controls while talks continue,” said Tobin Marcus, head of U.S. policy at Wolfe Research. “Trump seems to be telling investors they can safely buy the dip, and given their track record this year of doing so even when it seemed risky, we expect markets will accept this invitation.” ( Learn the best 2026 strategies from inside the NYSE with Josh Brown and others at CNBC PRO Live. Tickets and info here . )
