JPMorgan Turns Cautious on US Stocks Ahead of Fed Rate Decision

JPMorgan Chase & Co.'s trading desk has shifted to a 'tactically cautious' stance on US stocks for the next few weeks, following hawkish comments from Federal Reserve Chairman Kevin Warsh. The comments strengthened expectations for interest-rate hikes this year.

The change in sentiment was led by Andrew Tyler, head of US market intelligence, who moved away from their bullish view ahead of the Fed's September 16 policy decision. He cited uncertainty over the interest-rate outlook as a key factor.

Tyler noted that despite near-term risks, the broader market backdrop remains supportive, thanks to economic data and corporate earnings. However, he also pointed out several near-term risks, including rate uncertainty, seasonal weakness, and a potential unwind in high-flying AI stocks.