From Yahoo Finance: 2025-06-02 08:33:00

JPMorgan Chase & Co. strategists predict a potential slowdown in the S&P 500 rally due to higher prices and weaker US economic growth, possibly leading to stagflation. Trade uncertainty and tariffs remain key concerns impacting stock performance, despite recent gains in the market. US benchmark lags behind European and Asian shares.

Torsten Slok of Apollo Management highlights a unique inflation outlook between the US and Europe, suggesting upward pressure on US rates and downward pressure on European rates. JPMorgan strategists favor international stocks over US due to stretched valuations, and show bullish sentiment towards emerging markets and Chinese technology stocks.

Goldman Sachs Group Inc. predicts the S&P 500 is trading at fair value with stable valuations expected in the next year. Morgan Stanley’s Michael Wilson remains optimistic on US corporate earnings and believes stock valuations have likely bottomed, providing a positive outlook for the market.

Read more: JPMorgan Strategists Warn US Stock Rally at Risk From Stagflation