J.P. Morgan strategists said that as investors' profits are settled, recent stock market gains may stagnate after interest rate cuts anticipated by the Federal Reserve. Over the past few weeks, positive signals from policymakers have driven bets to continue to heat up, helping the stock market to rise. The team, led by Mislav Matejka, wrote: “Investors may be more inclined to lock in earnings before the end of the year rather than further increase their directional exposure. Expectations of interest rate cuts are fully reflected in prices, and the stock market has returned to a high point.” J.P. Morgan strategists are still bullish on the medium term, believing that the dovish US Federal Reserve will support the stock market. Meanwhile, low oil prices, slowing wage growth, and easing US tariff pressure will enable the Federal Reserve to relax monetary policy without increasing inflation. Other factors that may boost the stock market in 2026 include reduced trade uncertainty, increased fiscal spending in the Eurozone, and the rapid implementation of artificial intelligence technology in the US.

J.P. Morgan strategists said that as investors' profits are settled, recent stock market gains may stagnate after interest rate cuts anticipated by the Federal Reserve. Over the past few weeks, positive signals from policymakers have driven bets to continue to heat up, helping the stock market to rise. The team, led by Mislav Matejka, wrote: “Investors may be more inclined to lock in earnings before the end of the year rather than further increase their directional exposure. Expectations of interest rate cuts are fully reflected in prices, and the stock market has returned to a high point.” J.P. Morgan strategists are still bullish on the medium term, believing that the dovish US Federal Reserve will support the stock market. Meanwhile, low oil prices, slowing wage growth, and easing US tariff pressure will enable the Federal Reserve to relax monetary policy without increasing inflation. Other factors that may boost the stock market in 2026 include reduced trade uncertainty, increased fiscal spending in the Eurozone, and the rapid implementation of artificial intelligence technology in the US.