JPMorgan's trading desk adopts 'cautious' stance on U.S. stocks following news of Federal Reserve investigation

Odaily According to JPMorgan Securities' trading department, the Trump administration's recent latest challenge to the Federal Reserve's independence poses a threat to the U.S. stock market, at least in the short term. News of the Federal Reserve facing a criminal investigation hit U.S. markets on Sunday evening, causing stock index futures and the dollar to fall, with funds flowing into safe-haven assets like gold. Andrew Tyler, Global Head of Market Intelligence at JPMorgan, stated: "Although macroeconomic and corporate fundamentals support a tactically bullish stance, the risks to the Federal Reserve's independence create a suppressing factor over the market, so we remain cautious in the very short term. Risks surrounding the Federal Reserve's independence could drive the U.S. market to underperform in the near term." (Jin10)