JPMorgan sees U.S. markets more vulnerable to upcoming events

Published 20/08/2025, 10:48
© Reuters.

Investing.com -- JPMorgan strategists believe upcoming events like the Jackson Hole Symposium, Nvidia (NASDAQ:NVDA) earnings, and non-farm payrolls data will impact US equity markets more significantly than European ones.

The team led by Davide Silvestrini pointed out that despite these event risks, Euro Stoxx 50 short-dated implied volatilities are currently trading above those of the S&P 500.

JPMorgan strategists recommend an at-the-money put switch strategy, suggesting investors buy September 8 SPX puts while selling September 5 SX5E puts to receive a small credit upfront.

The bank noted that Nvidia earnings have evolved into an index-level event rather than just affecting the single stock. The company’s marginal risk contribution is now over twice its weighting in the S&P 500.

According to the strategists, the upcoming non-farm payrolls release will be particularly important due to its potential influence on the trajectory of monetary policy.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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