J.P. Morgan strategist foreseeing a sharp drop in US stocks in August said that the laggards of US stocks will catch up.

September 3rd news from Jin10 Data. Morgan Stanley’s chief US stock strategist Michael Wilson, who accurately predicted the pullback in the stock market last month, said that if the data released this Friday further proves the strength of the economy, stocks that have lagged behind the rising trend in the US stock market may receive a boost. Stronger-than-expected non-farm data could give investors ‘greater confidence that the risk of rise has dissipated’. Technology stocks have largely driven the surge in the S&P 500 index so far this year, but in recent weeks, investors have started to shift to other zones in the market due to concerns about overvaluation of technology stocks. Relevant data shows that about 16% of the index’s constituents are currently at a 52-week high, compared to only 4% at the beginning of the year. Since the sharp drop in August, strong economic data has helped the market recover, and Wilson expects this week’s non-farm report to further promote this trend. On the other hand, if the data is weaker than expected and the unemployment rate rises, then ‘the stock market will come under pressure, just like last month’.