TechFlow, December 9 — According to Jinshi Data, strategists at JPMorgan warned that the recent rally in U.S. stocks could stall after a potential Federal Reserve rate cut, as investors move to lock in profits.
Current market pricing indicates a 92% chance of a Fed rate cut this week. In recent weeks, bets on rate cuts have steadily increased, driven by upbeat comments from policymakers, boosting U.S. equities.
A JPMorgan team led by Mislav Matejka wrote in a report: "Investors may prefer to lock in gains by year-end rather than increase directional exposure. Rate cut expectations are already fully priced in, and U.S. stocks have returned to elevated levels."
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