The rally that shrugged off nearly everything this year finally cracked last week, as Brent crude's push above $100 a barrel dragged bond yields higher and knocked stocks off their remarkably resilient run. JPMorgan strategists are telling clients not to chase the selloff, arguing the wobble should prove short lived even though neither the US nor Iran has shown a clear pain threshold in their ongoing conflict, leaving oil's near term direction the key swing factor for risk appetite. 

The bank points to how well equities absorbed rising yields for most of the year, with the MSCI World index up 11% even as yields climbed 80 basis points over the same stretch, a relationship it expects can continue. That cushion has limits though. 

JPMorgan flagged the 5% to 5.5% range on the US 10 year yield as the zone where the usually positive link between yields and stocks starts to break down and turn negative instead. 

Finsum: JPMorgan sees the oil driven yield spike as a short-term wobble rather than a trend change.