JPMorgan traders have adopted a tactical bearish stance.

JPMorgan traders have turned tactical bearish, believing US economic growth expectations could "crash". JPMorgan has become more bearish on US stocks due to Trump's new tariff policy, which has led to a broad risk-off market in the first two trading days of March. Trump's tariffs, including a 25% tariff on all Canadian and Mexican imports and an additional 10% tariff on Chinese goods, have led to a broad risk-off market in the first two trading days of March. JPMorgan traders believe the market has entered another uncertain period, given the escalation and lack of apparent negotiation path based on Trump's comments. Given the lack of potential end to this escalation, the size of these tariffs is expected to put Canada and Mexico into recession. Expectations for US GDP growth are expected to crash and earnings expectations to be significantly downgraded. While JPMorgan stresses that a US recession is not its base case, increasing uncertainty and the escalating trade war could mean the market is "facing challenges" in the future. Key economic data this week will further shed light on the economic situation, mainly the February PMI on Wednesday and the February employment report on Friday. However, JPMorgan clarifies that these data may ultimately be irrelevant, as they are retrospective.