Stocks are headed for a weekly decline, and JPMorgan thinks there could be further downside ahead. The S & P 500 entered Friday's session down 1.9% week to date, on pace to snap a three-week advance. It would also mark the benchmark's worst weekly decline since early June. Rising Treasury yields and uncertainty over the war in the Middle East, coupled with signs of slower consumer spending, pressured equities this week. Going forward, JPMorgan thinks stocks could be in danger. .SPX YTD bar SPX year to date Problems under the hood "In isolation, the broad indexes are still bullishly trending and have not yet given any clear warning signs that a downturn is imminent. However, a deeper look at market internals, shifts in leadership, and the technical setups across a number of markets that typically lead, raise concern heading into late-summer/ early-fall bearish seasonality," technical strategist Jason Hunter wrote. The rotation away from artificial intelligence names during June and July didn't take place with conviction, he said. "The broadening and rotation isn't like the 4Q25 occurrence, when the shift had a pronounced pro-cyclical theme. This time around, it seems to be an unrelated combination of position unwinds, attempts to rotate away from crowded Technology exposure and a shift into portions of the market that could be construed as defensive in nature," he said. 2000 parallels Hunter also said artificial intelligence stocks are showing similarities to the moves that occurred in the 1999-2000 period, when tech stocks skyrocketed only to crash and send the broader market into a bear market. "While the hyperscalers saw some rotation into the underperforming group as hardware set back, the moves were uneven within the group, and the broad basket of these stocks remains below key 2026 range resistance. Given the similarities to what unfolded in 1999-2000 within the latter stages of the communications equipment capex investment cycle, we continue to see these market developments as a meaningful risk heading into post- Labor Day seasonality," he said.