JPMorgan thinks the stock market could run into some trouble this summer. Technical strategist Jason Hunter highlighted two growing risks for stocks: a decline in hyperscaler names — which initially led the bull market to record levels — and a pullback in copper prices. Let's break them down. Struggling hyperscalers The "Magnificent Seven" — the group that's willed the rest of the market to all-time highs as investors sought exposure to the artificial intelligence boom — has been under pressure of late. The Roundhill Magnificent Seven ETF (MAGS) , which tracks the seven names, dropped 9% in June. Chipmaker Nvidia lost more than 5% last month, while Alphabet and Meta Platforms declined by 6% and 11%, respectively. Amazon also plunged 12%, while Apple pulled back by 7%. Tesla shed 3.5%. "The inability for hyperscalers to find solid footing this summer could create a sentiment issue for the market given the uneven performance that is reminiscent of the internet bubble and the position crowding that has developed in recent months," wrote Hunter. Those declines come as investors take capital and rotate into other parts of the market, particularly memory chipmakers. Micron Technology shares, for example, rallied 19% in June and is up 262% year to date. Sandisk, meanwhile, jumped 34% last month and has soared 756% in 2026. Copper warning signal? Hunter also pointed out that the charts in copper and other industrial metals could be forming topping patterns. Copper futures are up 8% year to date, but they are also on pace for their third weekly decline in a row. Metals such as copper are seen as a barometer of the global economy, given their uses in construction and electronic products, among others. Put another way, if they begin to struggle, the economy could soon follow. "The potential top pattern forming in industrial metals charts is the second risk we are watching this summer, as copper and other base metals performance historically has done a good job acting as a leading indicator for the global manufacturing cycle," wrote Hunter.
<small>Source: CNBC</small>
