JPMorgan Expects a Market Correction Due to the War. How Large?

Amazingly, after plummeting on Monday morning over fears of a larger-than-expected war in the Middle East and spiking oil prices -- well over $110 a barrel over the weekend -- the S&P 500 index ended the trading session in the black. What happened to turn a plunging market back up?President Donald Trump said in an interview Monday that "the war is very complete, pretty much," indicating that the conflict with Iran may be near an end. Markets bought it, and the S&P 500 reversed direction while oil prices fell back below $90 a barrel (for Brent crude).Yet investment bank JPMorgan Chase (NYSE: JPM) has said that it expects a correction in the stock market of as much as 10% from the peak it hit on Jan. 28.  (Technically, a correction is a market drop of 10% to 20%, while a larger drop than that signals a bear market.) The S&P 500 is now about 2.9% below that peak. Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool