Potential Market Reaction to Anticipated Federal Reserve Rate Cut

According to BlockBeats, the U.S. stock market has reached over 20 record highs this year. However, JPMorgan has issued a warning that if the Federal Reserve proceeds with the expected interest rate cut next week, it could trigger a 'sell the news' event. Andrew Tyler, head of market intelligence at JPMorgan, stated that while the current bull market appears unstoppable, new supports have formed as previous pillars weaken. If the Federal Reserve implements the widely anticipated rate cut at its September 17 meeting, it could lead to a 'sell the news' scenario as investors withdraw. The S&P 500 Index has risen more than 30% from its April low, a period when U.S. President Donald Trump initiated the global trade war. Despite the stock market's resilience, the impact of tariffs is beginning to show, and recent employment data has been weak. As the historically challenging month of September for U.S. stocks coincides with the expected rate cut, investors are treading cautiously. Tyler expressed concern about the upcoming Federal Reserve meeting, noting that while Thursday's Consumer Price Index (CPI) release is unlikely to prevent a rate cut, comments from public companies and private enterprises about inflation suggest more 'tariff-induced cost pass-through' is imminent, with its speed and scale still uncertain. Additionally, a rate cut could stimulate labor demand, potentially leading to wage inflation, which is typically 'sticky.'