JPmorgan warns of the consequences of the US key interest rate on the stock market and advises this investment

• expected fedInterest rate could burden shares
• JPMorgan warns of “Sell the News” effect
• Gold in focus as protection in the focus

The Federal Reserve is about to reduce interest on September 17, 2025. However, according to JPMorgan, this step could not trigger the hoped -for thrust on the stock markets. Furthermore, the investment bank even warns that the central bank’s decision could become a classic “Sell the News” event.

In a recent market analysis, Andrew Tyler, head of the US market research area at JPMorgan, wrote in accordance with Investing.com: “We have concerns that the FED meeting on September 17, which delivers a reduction by 25 basis points, could become a ‘Sell The News’ event because investors step down to put macarodates, the reaction function of the Fed, potentially deceived positions, to take into account a weaker demand for stock returns from companies and a declining participation of private investors “.

JPmorgan sees AI as a support – Risks remain on the stock market

Despite this warning, JPmorgan officially remains with his “cautious, tactically bullish” outlook, it is said. Above all, the recessed interest in artificial intelligence is caused by a tailwind. Investments in the area have recently offered new support, JPmorgan stated according to Investing.com. At the same time, economic growth also seems robust, supported by strong corporate profits. A gradual improvement can even be observed in the trade voltages.

However, the bank sees significant risk factors. According to the JPMorgan, inflation, labor market and trade relationships remain critical. The bank therefore assumes that the Fed will hold on to its course and will reduce the key interest rates in September as planned.

According to Investing.com, the experts also warn that cost increases caused by new tariffs are imminent. It is still unclear to what pace and to what extent they will occur. In addition, there is a possible wage inflation: a falling job offer encounters demands supported by interest reductions, which could keep the wages up permanently.

Expert recommends: Investors should keep an eye on gold

JPMorgan keeps his investment recommendations from the previous week. Nevertheless, the bank advises stock investors to examine stronger gold addition, it is said. Because the expected interest rate reduction could burden the US dollar and support the gold price.

The markets are now looking forward to the FED session on September 17th. It remains to be seen whether the expected interest rate reduction actually brings relief – or as feared by JPmorgan.

Bettina Schneider / Editor Finanzen.net

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