[JPMorgan Warns U.S. Stocks May Drop 10% Due to Middle East Conflict, Market Not Prepared] BlockBeats News, March 9 — JPMorgan's trading division stated that the Iran war could trigger a drop of up to 10% in the S&P 500 index from its peak, and U.S. stock traders are not prepared for this scenario. Andrew Tyler, JPMorgan's Global Market Intelligence Head, said on Monday that due to the lack of signs of easing in the Middle East conflict and oil prices surpassing $100 per barrel, he has turned "tactically bearish" on U.S. stocks. If a correction occurs, this would mean the S&P 500 index could drop 10% from its peak to approximately 6,270 points, about 7% lower than last Friday's closing level. Tyler noted that investors' current positioning is not prepared for a downturn, stating, "Current positioning is overall neutral, lacking extreme de-risking actions." Last week, energy stocks were net sold as traders "expected the situation to ease." However, after several Gulf countries reduced production, oil prices surged above $100 per barrel, sparking concerns in the market about long-term supply shocks and stagflation risks. Tyler believes that if the conflict does not persist, these risks may dissipate quickly. "Once there is a clear path to easing the conflict, this tactical judgment will end, as the underlying macro fundamentals still support risk assets.