JPMorgan Warns of Potential Market Pullback Post-Fed Rate Cut, Suggests Gold as Hedge

JPMorgan's trading desk has alerted investors to a possible market retreat following the anticipated Federal Reserve rate cut on September 17. Market sentiment, currently buoyed by an 87% probability of a 25 basis-point reduction, may face a 'sell-the-news' scenario despite recent bullish trends.

The S&P 500's 30% rebound since April—driven largely by tech stocks—faces vulnerability to September's historical market weakness. JPMorgan recommends hedging strategies through VIX call options and Gold allocations, while acknowledging continued upside potential if recession risks remain subdued.

Cryptocurrency markets continue mirroring equity indices, with midterm uncertainty overshadowing strong fundamentals. The interplay between monetary policy and risk assets suggests turbulent weeks ahead for digital asset investors.