The NYSE in New York has traders working on the floor.
NEW YORK Reuters -- Marko Kolanovic, chief global markets strategist at JPMorgan Chase Co, believes Wall Street's recent sell-off presents a buying opportunity.
Four days after reaching an all-time closing high, the S&P 500 has fallen by 2.6%, an inauspicious start to a new year that has been plagued by inflation worries, a more hawkish Federal Reserve and spiking infections of the COVID Omicron variant.
Kolanovic believes that there is more room for the Fed to surprise on the dovish side than the hawkish side, as the pullback in risk assets is arguably overdone. He believes that while Omicron presents some downside risk, he also sees it becoming a positive for markets.
If a less severe strain crowds out more severe variants, it could turn a deadly pandemic into something more similar to a seasonal flu, Kolanovic wrote.
The note says that the market may need a few weeks to process the Fed's incremental changes and Omicron's beneficial impact as the more dominant, less severe strain because of the possibility of a dip in large cap stocks pulling down the broader market despite this week's volatility.