September is likely to be the last big rate hike in the Fed’s latest tightening cycle, setting the stage for a continued rally in U.S. stocks later this year, JPMorgan Chase & Co. said.
“We expect another big rate hike by the Federal Reserve in September, but don’t expect to surprise the market with another hawkish stance,” strategists led by Mislav Mateika said in a note Wednesday. There is,” explained. He said the trade-off between economic growth and monetary policy would improve going forward, “helping the overall market to continue its recovery.”
JPMorgan strategists are among the industry’s bulls on U.S. stocks even as investors continue to worry the Federal Reserve may remain hawkish. We expect rate-sensitive growth stocks to continue to outperform value stocks.
Top strategists expect the S&P 500 to rise an average of 3.5% more from current levels by the end of the year, according to a Bloomberg survey.
Original title:JPMorgan Strategists See Fed’s Last Big Rate Hike in September(excerpt)
