JPMorgan strategists are signaling that technology stocks are unlikely to reclaim their dominant market position for the remainder of 2026.
The bank’s analysts point to a broader shift in investor sentiment, with capital flowing away from high-growth tech names toward other sectors of the market.
Gabriela Santos, JPMorgan Asset Management’s chief market strategist for the Americas, indicated that the market may be in the midst of a significant tech correction.
Santos and her colleagues argue that the conditions that fueled tech’s multi-year dominance are now giving way to a more diversified investment landscape.
Strategist Mislav Matejka flagged that broader market participation is set to widen in the second half of 2026 as stagflation fears unwind across the global economy.
Matejka’s view suggests that as macro pressures ease, investors will find more compelling opportunities outside the technology sector than they have in recent years.
Stephen Parker, co-head of global investment strategy at JPMorgan Private Bank, characterized the rotation away from tech as healthy rather than alarming for long-term investors.
Parker’s framing positions the current shift not as a crisis but as a natural rebalancing, with investors pivoting toward areas offering better risk-adjusted returns in the current environment.
One area where JPMorgan holds a particularly cautious structural view is artificial intelligence, with the bank stating it stays “fundamentally bearish on AI cannibalisation trades,” including software, business services, and media.
Despite that bearish stance, JPMorgan acknowledged that tactical bounces in those groups are likely when the segment becomes oversold, offering short-term traders selective entry points.
The rotation theme has been gaining traction across Wall Street in 2026, with multiple major institutions reassessing their overweight positions in the technology sector after years of outsized gains.
For investors heavily concentrated in tech, JPMorgan’s outlook represents a meaningful prompt to reassess portfolio allocations before the second half of the year concludes.
