JPMorgan: U.S. stocks may face short-term profit-taking pressure, but the mid-term outlook remains bullish

[Bitpush] Wall Street giants have recently thrown some cold water on the market—J.P. Morgan’s strategy team believes that the current rally in US stocks may not last much longer.

Their logic is straightforward: right now, the market has already fully priced in expectations of Fed rate cuts, and stock prices have returned to high ranges. In this situation, investors are more likely to lock in profits before the end of the year rather than continue to increase their positions and bet on further gains. After all, everything that should have gone up has already risen, and all the expectations have been priced in.

However, looking at a longer time frame, J.P. Morgan remains relatively optimistic about the mid-term outlook. They listed several supporting factors: the Fed’s dovish stance is the baseline; low oil prices, cooling wage growth, and easing US tariff pressures all provide the central bank with room to loosen monetary policy without having to worry too much about an inflation rebound. Looking further to 2026, easing trade tensions, an economic rebound in Asia, fiscal stimulus in the Eurozone, and the accelerated adoption of AI technology in the US could all become new drivers.

Simply put, it’s short-term caution but medium-term optimism—a classic Wall Street style.