JPMorgan Warns of Stocks Complacency as Earnings Outlook Dims

Signs of stock-market complacency are emerging as the searing equities rally coincides with an acceleration in earnings downgrades, according to JPMorgan Chase & Co. quantitative strategists.

Stocks have bounced back from April’s slump at an even faster pace than after the Covid pandemic, sending the MSCI World Index and many regional benchmarks to record highs. At the same time, consensus data shows downgrades outpacing upgrades sharply in global earnings revisions, the JPMorgan team led by Khuram Chaudhry said.