JPMorgan sales department says reduced war risk may indicate the stock market has bottomed out

"Event-driven sell-offs often coincide with the stock market bottoming out when uncertainty peaks," wrote Matthew See, Head of Asia Pacific Specialist Sales and Market Thematic Business at the bank, in a report. "Driven by this news, the systematic de-risking seen over the past two months is expected to reverse sharply." De-risking refers to the process in which institutional investors such as hedge funds reduce exposure by simultaneously cutting both long and short positions. At Barclays, equity strategists led by Emmanuel Cau stated that as hedge funds unwind protection measures set up to hedge against the risk of further escalation of war, the stock market is likely to experience a round of "powerful short squeezes."