Report published June 2, 2026

J.P. Morgan US Market Intelligence: June 2, 2026 Morning Briefing

J.P. Morgan · June 2, 2026

J.P. Morgan maintains a tactical bullish stance on US equities, noting strong GDP upgrades and a major rotation into Software and US-focused ETFs. Despite Middle East tensions, the report highlights low credit defaults and a constructive macro backdrop ahead of Friday's NFP print.

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Finvaulta summarizes J.P. Morgan's analysis. Attribute opinions, forecasts, time-sensitive values, and chronology to the issuer and report date; do not treat this page as an independent verification or a current market-data source.

Key Takeaways

1.Tactical bullish call maintained for US equities, supported by strong fundamentals and upgraded GDP forecasts, though Middle East conflict risks warrant caution.
2.Software sector is showing significant bullish momentum and 'FOMO chase' characteristics following strong earnings from infrastructure and security names.
3.Credit default rates for High Yield and Leveraged Loans remain below historical averages, with May seeing zero default activity for the first time since 2018.

IDEAS & INSIGHTS – IN BRIEF
CATALYSTS TODAY (WEEK AHEAD)
JPM MARKET INTEL EQUITY & MACRO NARRATIVE
CREDIT / DEFAULT RATES
EQUITY DERIVATIVES
ISM-MFG
US Data Center Construction Spending Eclipses $50 Billion
DELTA-ONE FLOWS & POSITIONING
SOFTWARE COLOR
US MKT INTEL: NFP SCENARIO ANALYSIS
US MKT INTEL VIEW
ADDITIONAL HEDGES
NEWS LINKS
WEEKLY ECONOMIC DATA / EARNINGS

Report data

High-yield bond and leveraged loan default rates decreased in May

Metric	Estimate	Context
Q2 2026 GDP Forecast	2.5%	Feroli upgraded his 2Q26 GDP forecast over the weekend.
Equity ETF Weekly Flows	45.8 USD Billion	Strong inflows bolstered by a large issuer model rebalance.
10Y Treasury Yield	4.436%	Reported level at the morning briefing.
High-Yield Bond Default Rate	2.0%	Tracking below the 25-year average of 3.2%.

Source: J.P. Morgan Economics (Feroli); J.P. Morgan Equity Derivatives Strategy; Bloomberg; Nelson Jantzen (JPM Research). This is a dated model snapshot, not a live forecast.