Good news is fully priced in, leading to bad news. JP Morgan traders warn that interest rate cuts may trigger a decline in US stocks

The U.S. stock market has been on a continuous rise, setting more than 20 historical highs this year, but JPMorgan traders warn that the Federal Reserve's next move could dampen investor enthusiasm. The trading desk led by Andrew Tyler stated, "This current bull market feels unstoppable, with new support forming and past pillars being weakened. However, if the Federal Reserve cuts interest rates at the meeting on September 17 as widely expected by the market, it could turn into a situation where 'good news is bad news,' leading investors to choose to pull back." JPMorgan's trading department maintains a tactically bullish stance with low confidence levels while pointing out a series of risk factors, including inflation, employment, and trade wars. They also noted that retail investors typically reduce participation in September, and corporate buybacks of their own stocks have also decreased