JPMorgan’s trading desk shifted its U.S. equity outlook from bullish to tactically cautious.
This adjustment follows Federal Reserve Chair Kevin Walsh’s comments on persistent inflation at the Jackson Hole symposium.
Market expectations for further interest rate hikes increased following the Chair's remarks.
Bank analysts noted that while fundamentals remain sound, interest rate uncertainty creates near-term market headwinds.
Investors are repositioning for tighter monetary policy, which may pressure equity valuations and growth stocks.