Investors are eager for a rate cut, but JPMorgan warns it could have negative effects. Markets predict an 88% chance of a cut on September 17. The bullish view on looser monetary policy might be overly optimistic, risking a ‘Sell the News’ event.

The stock market has rallied this year on dovish Fed signals. JPMorgan warns the September 17 Fed meeting could lead to a market downturn. Concerns include macro data, Fed reaction, stretched positioning, weak corporate buyback bid, and waning retail investor participation.

Despite recent market highs, JPMorgan highlights underlying risks. The market surged after Powell’s Jackson Hole address, signaling more rate cuts. Financial experts like David Kelly doubt rate cuts will solve economic problems, potentially impacting retirees and loan availability.

Read more at Yahoo Finance: JPMorgan warns the Fed’s next rate cut could be a ‘sell the news’ event that tanks stocks