JPMorgan: Fed Rate Cut Fully Priced In, U.S. Stocks May See Profit-Taking

BlockBeats News, December 9th, a JPMorgan strategist stated that as investors take profit-taking actions, the recent rally in the US stock market may stall following a potential Fed rate cut.

Lead by Mislav Matejka, the JPMorgan team wrote in a report: "Investors may be more inclined to lock in gains before the year-end rather than increase directional exposure. Rate cut expectations are fully priced in, and US stocks have returned to highs."

The JPMorgan strategist maintains a bullish view on the medium-term outlook, stating that the Fed's dovish stance will support US stocks. Matejka wrote that meanwhile, low oil prices, slowing wage growth, and easing US tariff pressures will enable the Fed to ease monetary policy without stoking inflation. Other factors that could boost US stocks in 2026 include: reduced trade uncertainty, improved Asian economic outlook, increased eurozone fiscal spending, and the rapid adoption of artificial intelligence in the United States. (Jinse)