JPMorgan: Tech stocks are expected to rebound after the midterm elections.

JPMorgan's trading desk believes tech stocks may be poised for a rebound. JPMorgan's U.S. market intelligence team maintains a tactically bullish view, believing that the recent selloff in tech stocks could present short-term recovery opportunities, and recommends a barbell strategy of holding both tech stocks and cyclical stocks. The team judges that a broad sector-wide rally is likely to continue, but upside for the energy sector is limited, while downside pressure on tech stocks has eased somewhat; within cyclicals, it is more bullish on consumer and financial sectors. The research note cites data from JPMorgan analyst Craig Cohen: since 1950, in every year following a midterm election, the S&P 500 has posted gains, with an average increase of about 15%. The bank's market intelligence team added that historical data shows the S&P 500 posted average gains of 5.4%, 11.4%, and 12.5% in the three, six, and nine months after midterm elections, respectively.