[JPMorgan: U.S. Stocks Could Continue to Rise Slowly by Year-End, Driven by Rotation] BlockBeats News, August 25 — JPMorgan strategist Fabio Bassi believes that U.S. stocks still have room for further upside by year-end, but the market will rely more on sector rotation rather than a synchronized rally across all risk assets. The bank maintains a constructive view on equities, favoring high-quality growth stocks, leading cloud computing companies, and the semiconductor sector after its recent repricing. This assessment comes as U.S. stock market trends become more selective. Recently, the Nasdaq and Philadelphia Semiconductor Index have experienced significant volatility, with some previously strong-performing stocks in the AI chain facing concentrated sell-offs. Investors are beginning to reassess AI revenue realization, capital expenditure returns, and pressure from long-term interest rates. JPMorgan believes this volatility does not necessarily signal the end of the bull market but rather indicates that funds may withdraw from crowded trades and shift toward areas with higher earnings visibility and more digestible valuations. The bank also interprets the rise in long-term U.S. Treasury yields as a signal of increasing capital demand and investment opportunities. Investments in AI infrastructure, power grids, data centers, and cloud computing are absorbing substantial capital, and the market will continue to seek a balance between "growth opportunities" and "financing costs.