Market Volatility Expected to Continue in 2026, JPMorgan Strategist Warns

The stock market experienced a late-March rally, driven by optimism around a potential end to the Iran conflict, but the S&P 500, Dow Jones, and Nasdaq indices each fell approximately 5% for the month, marking a challenging quarter for investors. Jack Manley, a global market strategist at JPMorgan Asset Management, warns that markets will remain highly sensitive to both positive and negative headlines in 2026. 'Now is still a good time to be taking risk, but realize it is going to be a choppy, bumpy ride over the course of this year,' Manley said. JPMorgan's analysis of S&P 500 data over the past two decades reveals that six of the market's 10 best days occurred within two weeks of its 10 worst days. Investors who frequently move in and out of the market risk missing out on these critical upswings, leading to diminished returns. Manley advises maintaining a diversified portfolio to better navigate the anticipated volatility. A long-term S&P 500 index investment strategy, focusing on large-cap U.S. equities, has historically delivered strong returns, with gains of 16% in 2025, 23% in 2024, and 24% in 2023. However, the S&P 500 is currently down about 3.5% year to date in 2026. 'In any given year, you might have a bad year being a U.S. stock investor,' Manley noted, 'but over the long run, history has shown very clearly that U.S. equities are a great place to generate wealth.' Brian Schmehil, a certified financial planner at The Mather Group, emphasizes the importance of having a financial plan to manage emotional responses during market stress. He recommends maintaining sufficient cash reserves for short-term needs and a clear strategy for long-term investments. Regular portfolio rebalancing and understanding personal risk tolerance can help investors stay the course, Schmehil said, rather than reacting impulsively to market fluctuations. Additionally, he suggests consulting a reputable financial advisor to navigate the complexities of market volatility and emotional decision-making.