JPMorgan’s Matejka Warns Stock Rally Could Stall After Fed Cut

The recent equity rally could stall after the Federal Reserve’s expected rate cut as investors move to take profits, according to strategists at JPMorgan Chase & Co.

Markets are pricing a 92% chance that the US central bank will lower borrowing costs on Wednesday. Bets have been steadily rising on the back of positive comments from policymakers over the past few weeks, helping to boost stocks.

“Investors might be tempted to lock in the gains into year end, rather than be adding directional exposure,” the team led by Mislav Matejka wrote in a note. “The cut is now fully in ...