JPMorgan: Fed Rate Cuts Fully Priced In, U.S. Stocks May Face Profit-Taking Wave

GateUser-6433627c · 2025-12-09T06:27:09+00:00

On 12/9, JPMorgan strategists said that as investors take profits, the recent rally in U.S. stocks may stall following a potential Fed rate cut. A JPMorgan team led by Mislav Matejka wrote in a note: "Investors may be more inclined to lock in gains before year-end rather than add directional exposure. Rate-cut expectations are fully priced, and U.S. equities are back near highs." JPMorgan strategists remain constructive on the medium-term outlook, saying a dovish Fed will support U.S. equities. Matejka wrote that, meanwhile, subdued oil prices, slower wage growth, and easing U.S. tariff pressures will allow the Fed to loosen policy without stoking inflation. Other factors that could lift U.S. stocks in 2026 include reduced trade uncertainty, improving economic prospects in Asia, and eurozone fiscal su

GateUser-6433627c

2025-12-09 06:27:09

On December 9, JPMorgan strategists stated that the recent rally in U.S. stocks may stall after a potential Fed rate cut, as investors move to take profits. In a report led by Mislav Matejka, the JPMorgan team wrote: “Investors may be more inclined to lock in gains before year-end rather than increase directional exposure. Rate cut expectations are already fully priced in, and U.S. stocks have returned to their highs.” The JPMorgan strategists maintained a bullish outlook for the medium term, saying that a dovish Fed would support U.S. stocks. Matejka wrote that, meanwhile, subdued oil prices, slowing wage growth, and easing U.S. tariff pressures will allow the Fed to ease monetary policy without fueling inflation. Other factors that could boost U.S. stocks in 2026 include reduced trade uncertainty, improved economic outlook in Asia, increased fiscal spending in the eurozone, and the rapid adoption of artificial intelligence in the U.S. (Jin10)

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