According to J.P. Morgan's latest report, the US stock market will face serious challenges in the second half of the year under the threat of several major potential risks. A research team led by J.P. Morgan Chase senior researcher Zahin Off wrote that the performance of the S&P 500 index may be “weaker” compared to international stock markets for the rest of 2026. “We expect US stocks to rise from current levels, but returns by the end of the year are unlikely to reach the level of the first half of 2026,” the report said. Here are a few major factors that the bank believes will affect the market for the rest of 2026: including “market malfunction” and increased risk of volatility; increased inflation and rising interest rates; retail investors may trigger a negative feedback cycle; and labor market turmoil.

According to J.P. Morgan's latest report, the US stock market will face serious challenges in the second half of the year under the threat of several major potential risks. A research team led by J.P. Morgan Chase senior researcher Zahin Off wrote that the performance of the S&P 500 index may be “weaker” compared to international stock markets for the rest of 2026. “We expect US stocks to rise from current levels, but returns by the end of the year are unlikely to reach the level of the first half of 2026,” the report said. Here are a few major factors that the bank believes will affect the market for the rest of 2026: including “market malfunction” and increased risk of volatility; increased inflation and rising interest rates; retail investors may trigger a negative feedback cycle; and labor market turmoil.