JPMorgan: Brent Crude Breaks $100, Stock Market Pullback Offers a Buying Opportunity

According to Chaowang Research, JPMorgan’s September 14, 2026 report indicates that Brent crude oil has broken through the $100 level, trading at $107.6 on September 10. Coupled with rising bond yields, global equity markets have begun to decline. JPMorgan considers this pullback an opportunity to increase equity exposure. Year-to-date, the MXWO index has risen 11%, while bond yields climbed 65 basis points over the same period. The yield increase is driven by robust economic activity and earnings upgrades, whereas long-term inflation expectations have not risen. The 5y-5y forward inflation rate has not reacted to higher oil prices, the term premium sits at a 10-year peak, and wage growth is at its slowest pace in five years. JPMorgan notes that the equity-bond correlation faces a reversal risk when the 10-year U.S. Treasury yield approaches 5% to 5.5%; currently at roughly 4.83%, it remains below this threshold. The bank maintains an overweight stance on equities, neutral on bonds, and underweight on cash. Regionally, it is overweight in emerging markets and the eurozone, and sector-wise, overweight in materials, industrials, and consumer discretionary. It recommends leveraging oil-driven market weakness to add to stock positions.