JPMorgan Trading Department Adopts 'Cautious' Stance on US Stocks After News of Federal Reserve Investigation Emerges

Following reports, JPMorgan's securities trading department has expressed concerns over the recent Trump administration's latest challenge to the independence of the Federal Reserve, posing a threat to the US stock market in the short term. News of the Federal Reserve facing a criminal investigation on Sunday evening shook the US market, leading to a drop in stock index futures and the US dollar, with funds flowing into safe-haven assets like gold. JPMorgan's Global Market Intelligence Director, Andrew Taylor, stated, 'Despite macro and corporate fundamentals supporting a tactical bullish stance, the risks to the independence of the Federal Reserve are forming a suppressive factor in the market, hence we remain cautious in the extremely short term. Risks surrounding the independence of the Federal Reserve may drive underperformance in the US market in the short term.'

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