JPMorgan's trading arm adopted a "cautious" stance on U.S. stocks following news of an investigation into the Federal Reserve.

JPMorgan Chase's securities trading division stated that the Trump administration's latest challenge to the Federal Reserve's independence poses a threat to the US stock market, at least in the short term. News of a potential criminal investigation into the Fed impacted US markets Sunday night, causing stock index futures and the dollar to fall, with funds flowing into safe-haven assets such as gold. Andrew Taylor, JPMorgan Chase's global head of market intelligence, said, "While macroeconomic and corporate fundamentals support a tactical bullish stance, the risks to the Fed's independence are creating downward pressure on the market, so we remain cautious in the very short term. The risks surrounding the Fed's independence could push US markets to underperform in the short term." (Jinshi)