JPMorgan’s Matejka Says Stocks Risk Stalling Even With Rate Cut

September 02, 2024 at 3:38AM EDT -- The equity market rally may stall near record highs even if the Federal Reserve starts a highly anticipated rate-cutting cycle, according to JPMorgan Chase & Co. strategists.

The team led by Mislav Matejka — who has been among the most bearish voices on stocks this year — said that any policy easing would be in response to slowing growth, making it a “reactive” reduction. The seasonal trend is another impediment, with September historically the worst month for US stocks. “We are not out of the woods yet,” Matejka wrote in a note, reiterating his preference for defensive sectors against the backdrop of a pullback in bond yields. “Sentiment and positioning indicators look far from attractive, political and geopolitical uncertainty is elevated, and seasonals are more challenging again in September.”

After slumping in the early days of August, the S&P 500 recovered to end the month within striking distance of a record high on bets that the Fed will start cutting interest rates at its next policy meeting on Sept. 17-18. The MSCI All-Country World Index is at an all-time peak. The US benchmark has declined 4.2% on average in September in the past five years, according to data compiled by Bloomberg. Traders are also awaiting a raft of economic data, including the all-important jobs report this week, for more clues on the health of the economy.Other market strategists including Bank of America Corp.’s Michael Hartnett have recently warned that the Fed’s first rate cut would be a catalyst to sell equities rather than drive another leg higher.

Belgique Dernières Nouvelles, Belgique Actualités

Similar News:Vous pouvez également lire des articles d'actualité similaires à celui-ci que nous avons collectés auprès d'autres sources d'information.

3 stocks retail investors turned to when stocks fell this weekSome retail investors used the market sell-off earlier this week as a buying opportunity. IG Group North America CEO JJ Kinahan joins Yahoo Finance to...
La source: YahooFinanceCA - 🏆 47. / 63 Lire la suite »

Canadian stocks’ record-setting rally Has room to run, BMO saysCanadian stocks are primed to keep breaking records in months to come thanks to ready-to-deploy retail cash hoards and foreign investor inflows, according to BMO Capital Markets.
La source: BNNBloomberg - 🏆 83. / 50 Lire la suite »

Big Tech stocks: It's time to go bargain hunting, analyst saysThe tech sector (XLK) faced a large sell-off in the past couple of trading days, now witnessing a bounce back on Tuesday. While some on Wall Street are...
La source: YahooFinanceCA - 🏆 47. / 63 Lire la suite »

Bridgewater says sell-off in Japan's stocks is overdoneBridgewater Associates said in a commentary sent to investors on Tuesday that it believes the sell-off in Japan's equities the previous day was exaggerated...
La source: YahooFinanceCA - 🏆 47. / 63 Lire la suite »

Fed responds to economic data, not politics or stocks, says Chicago Fed's GoolsbeeChicago Federal Reserve Bank President Austan Goolsbee on Thursday reiterated that the central bank's job is not to respond to stock market routs or...
La source: YahooFinanceCA - 🏆 47. / 63 Lire la suite »