(FAP)-- JPMorgan strategist Marko Kolanovic said that US technology stocks, which have risen 20 per cent this year and pushed up the market, are "getting tighter and tighter". The sector now seems to be "overbought" and close to all-time highs. Bond yields are expected to fall further, but the rebound in technology stocks appears to have caused them to fall too much. In addition, there is an obvious and growing risk that the Fed will not be able to meet market expectations of a rate cut in the second half of the year. Even in an optimistic soft landing scenario, the upside for the stock market may be less than 5 per cent, while a mild recession means that previous lows will be explored again, resulting in downside space of more than 15 per cent. The company said investors should underallocate value stocks in the second half of the year and be bullish on growth stocks and defensive stocks.