JPMorgan Shifts to Tactically Cautious Stance on US Equities Amid Hawkish Fed Tone

JPMorgan Chase & Co.'s trading team has shifted its stance on US equities from 'bullish' to 'tactically cautious', citing hawkish remarks by Federal Reserve Chairman Kevin Warsh.

The change in outlook follows Warsh's speech at Jackson Hole, where he emphasized that inflation shows little sign of cooling. This sparked market expectations of a quarter-point rate increase at the September 16 policy meeting.

JPMorgan's head of US market intelligence, Andrew Tyler, noted that while fundamental economic conditions and corporate earnings remain robust, short-term pressures are likely to cause stock indexes to move sideways rather than extend recent gains.