JPMorgan Chase: The plunge in the largest tech stocks does not constitute a credit issue

Golden Finance reports that JPMorgan believes the trillion-dollar stock market value evaporation triggered by DeepSeek on Monday has little impact on the bond market, but concerns about generally rising volatility may have a negative impact on credit spreads. Despite the stock market decline, high-rated bond spreads averaged 1 basis point wider, and the CDX investment-grade bond index expanded by 0.7 basis points. Eric Beinstein and Nathaniel Rosenbaum, credit strategists at JPMorgan wrote in a report that given the indirect connection between DeepSeek's technological progress and high-rated credit risk, "this is a logical result."