New York bank cuts $160 billion US stocks
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JPMorgan Chase is liquidating more than $160 billion in U.S. equities on Monday, July 13, in a move that sharply reduces its stock market exposure ahead of a pivotal week for Wall Street. The reduction comes just before major U.S. banks, including JPMorgan, Citigroup, Wells Fargo and Goldman Sachs, begin reporting second-quarter earnings. The macro backdrop includes a more hawkish Federal Reserve in response to persistent inflation, volatile oil prices amid renewed tensions in the Middle East, and U.S. stock indices trading near record highs. Economists widely expect the Fed to keep interest rates unchanged for the remainder of the year.
Timeline
- This year S&P 500 gains exceed 10 percent
- Recently Federal Reserve adopts more hawkish stance
- Over the weekend US–Iran missile exchanges reported
- Monday JPMorgan begins $160 billion stock liquidation
- This week Major US banks release second-quarter earnings
- This week Investors await key US inflation data
- This year Reuters survey favors unchanged Federal rates
Sources
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