J.P. Morgan trading department: Expect a pullback in the US stocks soon, optimistic about the buying opportunity at lower levels.

With the escalating geopolitical tensions putting pressure on the US stock market, Morgan Stanley's trading department said that potential pullbacks in the future will bring buying opportunities, and the reasons for the longer-term bullish view on US stocks remain intact. The trading team, led by global market intelligence chief Andrew Tyler, has switched from a tactical bullish stance on US stocks to a cautious one, but they emphasized that the increased possibility of a correction will create a "buying on dips" moment. They recommend taking a defensive stance, including being long on the seven tech giants of the US stock market, metals and mining, healthcare, as well as aerospace and defense related stocks. "Given the rapidly changing geopolitical situation and the approaching deadline for trade agreements," they wrote. "It appears that the market is likely to see a short-term correction." Assuming that longer-term tariff relief is still ongoing, the bullish case still stands. But until the US involvement in Middle East affairs becomes clearer, it is advised to remain cautious.