JPMorgan: The dollar may underperform U.S. stocks after progress in U.S.-China trade relations

TechFlow, May 13 — According to Jinshi Data, JPMorgan analysts said in a report that after the U.S. and China agreed to temporarily reduce tariffs, the dollar may underperform relative to U.S. equities. The tariff relief lowers the likelihood of a U.S. economic recession while also benefiting global economic growth. U.S. economic growth may still lag behind the rest of the world. Rationales for a weaker dollar remain, albeit with reduced intensity. Over the medium term, signals regarding the extent to which U.S. exceptionalism persists will be more relevant to the dollar.