JPMorgan Says Slowing U.S. Virus Cases to Put Floor Under Stocks
- Deceleration trend could keep pressure on the VIX: strategists
- Hunter, Floman say S&P 500 rallies may peak near 2,750-2,850
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A slowdown in the growth rate of new U.S. coronavirus cases may help put a floor under stocks and dampen volatility, according to JPMorgan Chase & Co.
The Cboe Volatility Index has been tracking data associated with the global spread of cases and has shown a relationship with growth at the U.S. state level, technical strategists Jason Hunter and Alix Tepper Floman wrote in a note Friday. The number of states with growth rates above 20% dropped to under 10 from over 40 in the past two weeks, a trend which could keep pressure on the VIX and moderate any equity declines -- if it continues, they said.