JPMorgan’s Peters Says Inflation Risks Lurk Beneath Stock Peaks

Global fragmentation, artificial intelligence, and inflation are three defining forces shaping markets which have gained urgency due to recent events such as the war in the Middle East, according to JPMorgan Chase & Co.’s Grace Peters.

Despite equity markets trading near highs, Peters said the underlying driver of increased capital expenditure makes valuations sensible. Companies reported a 12% increase in capital expenditure beyond AI investments in recent earnings, she noted, arguing this structural shift in spending is driven by national security concerns.