According to J.P. Morgan’s research report dated September 6, 2026, despite increased volatility in interest rates, exchange rates, and oil prices, four key reasons support a bullish outlook on U.S. equities: strong growth (ongoing upward revisions to GDP and EPS forecasts), interest rates that are not excessively high (rising yields reflect growth rather than tightening), a U.S. preference for a weaker dollar policy, and hedge funds maintaining a neutral to light positioning. The August non-farm payrolls added 162,000 jobs, significantly exceeding expectations; however, whether the Fed will raise rates in September depends on the September 11 CPI data, with J.P. Morgan forecasting a core CPI monthly increase of 0.21%. The MSCI World Index has risen 12% year-to-date, while the 10-year U.S. Treasury yield has increased by only 60 basis points, as earnings growth continues to justify valuations.
JPMorgan: Four Reasons Supporting a Bullish Outlook for U.S. Stocks; September Rate Hike Depends on CPI
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Summary
JPMorgan outlines four factors supporting a bullish trend in U.S. stocks amid ongoing interest rate uncertainty: strong GDP and EPS growth, moderate rate hikes aligned with economic expansion, a weak dollar bias, and light hedge fund positioning—all pointing upward. August payrolls surged by 162,000, but a September rate move hinges on the CPI data due on September 11. JPMorgan expects core CPI to rise 0.21% month-over-month. The MSCI World Index is up 12% this year, while the 10-year yield has increased by just 60 basis points.
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