JP Morgan Cautious on US Stocks Amid Fed Rate Hike Fears

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 traders led by Andrew Tyler, head of US market intelligence, moved away from their bullish view ahead of the Fed's Sept. 16 policy decision, citing uncertainty over the interest-rate outlook.

Despite near-term risks, JPMorgan expects the broader market backdrop to remain supportive, helped by economic data and corporate earnings.