JPMorgan Sees 10% Correction in S&P 500 as War Risks Build Up

US stock traders are unprepared for a correction in the S&P 500 that would see the gauge fall as much as 10% from its peak as a result of the war in Iran, according to JPMorgan Chase & Co.’s trading desk.

Andrew Tyler, JPMorgan’s head of global market intelligence, turned “tactically bearish” on US stocks Monday as the Middle East conflict showed no signs of abating, sending oil above $100 a barrel. A correction would mark a 10% drop in the US benchmark from its peak, implying the S&P 500 would drop to roughly 6,270 points — or roughly 7% lower from where the index closed on Friday.