JPMorgan Warns of Market Turbulence Amid Trump Tariffs
JPMorgan’s mid-year outlook paints a mixed picture for equity markets. The bank expects President Trump’s tariff agenda to spark economic friction and weigh on corporate profits.
Despite these looming pressures, JPMorgan doesn’t see the bull market breaking down.
The firm highlights that behind the scenes, the administration is crafting pro-growth policies. These include plans for lower interest rates, cheaper energy, and reduced regulation—factors that could eventually help stabilize markets.
“Markets are volatile now,” the report notes, “but major economies could hit new highs by mid-2026.”
Tech May Lead Next Leg of Rally
JPMorgan remains bullish on technology stocks. It expects a “second wind” for the sector, driven by strong earnings and discounted valuations. While the Magnificent Seven still trade at a premium, their valuation gap versus the broader market has narrowed to decade lows.
Artificial intelligence also continues to fuel optimism. The bank sees AI as a long-term growth engine. Another key support? Trump’s tariff exemptions for semiconductors and electronics, which protect U.S. tech from trade shocks.
“The U.S. holds a strong edge in tech,” the outlook notes. “Tariff protection reinforces that advantage.”
Dimon Sounds Caution Over Market Euphoria
While JPMorgan’s broader stance remains upbeat, CEO Jamie Dimon takes a more cautious tone. He warns that investors might be too complacent. The recent 22% S&P 500 rally, he argues, reflects overconfidence, not resilience.
Dimon says Trump’s tariffs could rekindle inflation, risk stagflation, and damage America’s global image. He urges investors to temper expectations and prepare for tougher macro conditions.
Choppy Now, But Trend Points Higher
Volatility may dominate in the near term, but JPMorgan expects strength to return. It sees U.S., European, and Japanese equity markets reaching new record highs within the next 12 months.
While the road looks rocky, the bank argues the long-term trend remains bullish—so long as policy stays market-friendly and tech continues to lead the charge.
Kosta Gushterov
Reporter at Coindoo
Kosta has been a part of the team since 2021 and has solidified his position with a thirst for knowledge, incredible dedication to his work and a “detective-like” mindset. He not only covers a wide range of trending topics, he also creates reviews, PR articles and educational content. His work has also been referenced by other news outlets.
