J.P. Morgan warns: A timely rate cut by the Fed may trigger a dumping market of "fully priced-in good news".

On September 9, US stocks have set more than 20 historical highs this year, but JPMorgan warns that if the Fed cuts interest rates as expected next week, it could trigger a "fully priced-in good news" selling trend. Andrew Tyler, head of market intelligence at JPMorgan, stated: "The current bull run seems unstoppable, forming new support as the original pillars weaken. However, if the Fed implements the widely anticipated interest rate cut at the meeting on September 17, this could evolve into a 'fully priced-in good news' event as investors retreat." The S&P 500 index has risen over 30% from its April low, when Trump first fired the shot in the global trade war. The stock market has shown resilience so far. However, as the impacts of tariffs begin to show and recent employment data weakens, investors are treading carefully as they face the historically worst-performing September for US stocks alongside expected interest rate cuts. Tyler's concerns about the upcoming monetary policy meeting are that: although the consumer price index (CPI) is set to be published on Thursday, it is unlikely to prevent the Fed from cutting interest rates, but comments from public companies and private enterprises about inflation indicate that more "tariff-induced cost pass-through" is about to emerge, the speed and scale of which are still unknown. Additionally, interest rate cuts may stimulate labor demand, which could trigger typically "sticky" wage inflation. (Jin10)