Wells Fargo equity strategists led by Ohsung Kwon have joined JPMorgan’s trading desk this week in adopting a more cautious stance on US equities. JPMorgan’s tactically cautious positioning was adopted on August 31, 2026, catalyzed by hawkish commentary from Fed Chairman Kevin Warsh that raised expectations for a September interest rate hike. Three factors are driving this caution: historically unfavorable September seasonality as the weakest month for US equity returns, uncertainty surrounding the 2026 midterm elections, and fading momentum in the AI-linked stock rally. Both institutions clarify that this represents short-term tactical positioning rather than a fundamental indictment of the US economy or long-term earnings trajectory.
Source: Read the original article
