Mega-cap stocks face bigger selloff risk as recession looms: JPMorgan

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Mega-cap stocks face bigger selloff risk as recession looms: JPMorgan
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Mega-cap stocks powered the 2023 market rally, but they now face a bigger selloff risk as recession looms, a JPMorgan strategist says

Mega-cap stocks have powered the equity rally of 2023, but that may not be the case for long. These market leaders now face a bigger selloff risk than other names as a recession looms, according to JPMorgan strategist Jason Hunter.

"This is typical late-cycle behavior where, as growth starts to decelerate but not move into negative territory, the money moves into the more quality names and you get more and more concentration as you go," Hunter said.

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