Some investors are worried there is more risk to the downside, even as the Nasdaq has recovered about half of its losses after the U.K. vote last week to leave the European Union.
But Ben Mandel, global strategist at JPMorgan, told CNBC’s “Squawk on the Street” on Wednesday that there is a “set of two shock absorbers which mitigate the effect for the U.S. in particular.”
The first is that “cyclical strength is reasonably good,” according to Mandel, who cited the resilience of the consumer and the labor market. He also said that central banks are going to have “an aggressive response” especially from the Bank of England and the European Central Bank.
“I think the [Bank of Japan] is forced to act some time this summer. For its part, the [Federal Open Market Committee] is probably on hold until December. So you have this ubiquitous tack towards monetary easing, which cushions the blow,” Mandel said.