Investors brace for stagnant summer as JPMorgan predicts rangebound S&P 500
- JPMorgan's Fabio Bassi predicts the S&P 500 could remain range-bound this summer.
- Historically, the summer months yield positive returns for the S&P 500, but current indicators suggest caution.
- Given trade uncertainties and inflation concerns, a challenging summer for stocks is anticipated.
In the United States, JPMorgan's recent analysis indicates that the stock market may not see significant movement during the summer months of 2025. Published on May 27, 2025, the bank's head of cross-asset strategy, Fabio Bassi, articulated concerns over the S&P 500's potential to stay within a limited range, following a recent rally that saw a 20% increase since the low point on April 7. He suggested that although the benchmark hit a peak of 5,802.82, expectations for further growth are tempered, with a consolidation phase anticipated instead. Bassi's concerns were exacerbated by existing worries surrounding inflation driven by U.S. trade policies. These factors have led to an adjustment in investor expectations regarding Federal Reserve interest rate cuts, with traders now predicting only two cuts rather than the previously anticipated three for the year. This shift reflects a broader