JPMorgan Chase Warns That Federal Reserve Interest Rate Cuts May Trigger Market Volatility

According to Jinshi, JPMorgan Chase strategist Mislav Matejka pointed out that if the Federal Reserve cuts interest rates due to economic weakness or political pressure, it may trigger turbulence in the stock, bond, and foreign exchange markets. The bank's analysis of data since 1980 shows that the dollar usually weakens, U.S. Treasury yields decline, and emerging market stocks perform relatively well during interest rate cut cycles. Morgan Stanley analyst Mike Wilson added that the stock market often reflects policy shifts in advance, but if employment data deteriorates significantly, the U.S. stock market's gains may be hindered. The S\&P 500 index is currently up 5% year-to-date, lower than the 21% gain in European stocks. [ChainCatcher]