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JPMorgan Warns of Potential Market Pullback Post-Fed Rate Cut, Suggests Gold and VIX as Hedges
JPMorgan Warns of Potential Market Pullback Post-Fed Rate Cut, Suggests Gold and VIX as Hedges
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BTCCSquare news:
JPMorgan's trading desk alerts investors to a possible market retreat following the anticipated Federal Reserve rate cut on September 17. Despite an 87% market-implied probability of a 25-basis-point reduction—bolstered by weak labor data—the bank warns of a 'sell-the-news' scenario amid extended equity rallies. The S&P 500’s 30% rebound since April, driven by tech stocks, faces September seasonality risks.
The firm advocates hedging through VIX call options and Gold allocations, while acknowledging upside potential if recession fears continue to recede. Cryptocurrencies remain tethered to equity market movements, with regulatory clarity in the U.S. fueling institutional participation despite macroeconomic uncertainties.
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