JPMorgan: Fed Rate Cut Pace Will Be Key for the Market, Stock Market Expected to Consolidate in the Short Term

BlockBeats News, September 15th, Morgan Stanley pointed out that the stock market trend depends on the extent of weakness in the US employment data and whether the Fed's rate cut is swift enough. Traders generally expect a 25 basis point rate cut this week, but sustained inflationary pressures may slow down the Fed's decision-making pace. The bank expects the stock market to enter a consolidation phase in the short term, but maintains a bullish long-term view, based on strong corporate earnings performance, with a target of 7,200 points for the S&P 500 by mid-2026. It is recommended to overweight small-cap stocks and re-inflation trading strategies, and to buy on dips for the year-end rally. (Bloomberg)