JPMorgan Chase issues caution: Stock market recovery could weaken, while Bank of America advises optimal investment strategy to clients as the 'purest opportunity in the market'
Hapless Hacks and Banker's Beverages
Let's dive into the latest insider buzz from the world of trading! JPMorgan Chase's cocky trading squad and Bank of America's loose-lipped wizards have piped up about the future of the US stock market.
JPMorgan reckons there's still some leeway for the US stock market to sprint a bit higher, with the recent de-escalation of President Trump's trade tussle[1]. But here's the kicker – they think the glory days aren't quite here yet. The real impact of Trump's taxes on the economy is yet to rear its ugly head, so they reckon the market hasn't conquered its highest peak[1].
As JPMorgan's posse of equity researchers spread the word, they're all like, "The market's drifting higher without much drama. No major negativity, like tariff wars or bond yield spikes, to derail the fun. But this ain't the all-clear signal[1]. We're still one or two months away from witnessing the trade struggles' true economic consequences."
Meanwhile, Bank of America's troupe of market gurus have put a wet blanket on the stock market recovery[2]. They reckon the recovery is no lasting dream and advise their clients to sell US stocks during rallies[2]. What's more, they think the best investment game at the moment is debasing the US dollar. A depreciating greenback is like a calling card proving that investors worldwide are pulling their cash out of US assets[2].
In simpler terms, a week dollar indicates investors are shoving their savings into things other than US assets[2]. BofA says there are three ways the greenback drops: either it slows and dies (with lower yields), or it plummets like a fool (with higher yields). It's already clear as day that the greenback is in the doghouse, considering the surging gold prices[2].
BofA predicts the exodus from US assets won't stop unless the Federal Reserve slashes interest rates, Donald Trump twists China's rubber arm on a trade deal, and consumer spending storms ahead[2].
Intriguingly enough, the US dollar index, which compares the greenback against other major currencies, has taken a drop of about 8% so far this year[3]. On the flip side, the S&P 500 is up approximately 15% since its lows of 4,835 points in April[3].
So, check out The Daily Hodl for market insights, including bitcoin, ethereum, trading, crypto, blockchain, and more. Don't forget to connect with us on X, Facebook, and Telegram. And, if you fancy playing the stock market, keep an eye out for those movers and shakers!
[1] Bloomberg. (2025, May 4). JPMorgan’s Trading Team Says US Stock Market Has More Upside, but Growth Hasn’t Peaked. Retrieved May 4, 2025, from https://www.bloomberg.com/news/articles/2025-05-04/jpmorgan-sees-more-upside-for-us-stock-market-but-says-growth-has-yet-to-peak
[2] Fry, J. (2025, May 4). Bank of America Advises Clients to Sell U.S. Stocks and Dollar on Rallies. Retrieved May 4, 2025, from https://www.reuters.com/article/us-usa-stocks-bofa-strategy/bank-of-america-advises-clients-to-sell-u-s-stocks-and-dollar-on-rallies-idUSKCN2AS1OK
[3] The Daily Hodl. (2025, May 4). JPMorgan Chase and Bank of America Say US Stock Market's Recovery Will Likely Be Short-Lived. Retrieved May 4, 2025, from https://www.thedailyhodl.com/2025/05/04/jpmorgan-chase-and-bank-of-america-say-us-stock-markets-recovery-will-likely-be-short-lived/
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- Bitfinex Reveals Quarterly Liquidity Report: Sky-High Bitcoin and Ethereum Liquidity Indicate Crypto Markets on the Rise April 30, 2025
- Despite the positive outlook from JPMorgan Chase on the US stock market, some may choose to invest in the volatile world of cryptocurrency, as evidenced by the latest announcements about ECHOITY, a charity extension on Ethernity Chain's NFT platform, and the listing of Chainlink Tokenized USD Treasury Notes.
- The ongoing debate between JPMorgan Chase and Bank of America about the stock market's future could sway some investors towards altcoins, especially in light of recent developments like Elrond's new cross-chain interoperability solution, Voyager, and the launch of Solana's DeFi-focused direct Serum listing.
- As the US dollar continues to weaken, according to Bank of America's predictions, some investors might find the uncertainty of the stock-market more appealing and opt for the relatively stabilized exchange of cryptocurrency, such as bitcoin and ethereum, which are demonstrating increased liquidity, as reported by Bitfinex's quarterly liquidity report.
