On September 17th Eastern Time, the Federal Reserve cut rates by 25 basis points at its September meeting, marking the first rate cut since December of last year. J.P. Morgan Asset Management expressed its public view that this 25 basis point rate cut by the Fed was in line with market expectations; therefore, the meeting outcome did not trigger significant market volatility. Major U.S. stock indices experienced minor fluctuations, and U.S. Treasuries saw slight movements.

In the view of J.P. Morgan Asset Management, compared to the previous meeting, the statement from this meeting added a description that inflation has risen and indicated that the risks to employment have increased. The updated Summary of Economic Projections raised the GDP growth rate forecasts for 2025 to 2027, potentially indicating that the restart of the rate-cutting cycle is beneficial for the U.S. economy to continue growing. The unemployment rate forecast for the end of this year was maintained, but the 2026 unemployment rate was revised down to 4.4%, suggesting that employment conditions may improve next year even as labor supply declines.

J.P. Morgan Asset Management stated that historical experience shows the Fed initiating a rate-cutting cycle often helps to avert economic recession and is beneficial for stock market performance. They are focusing on opportunities in the U.S. technology, communication services, and financial sectors amidst the development of artificial intelligence.

"Based on the potential for continued U.S. dollar weakness, non-U.S. markets and gold may remain resilient. From the perspectives of valuation attractiveness, earnings trends, and market momentum, the structural opportunities in A-shares, Hong Kong stocks, and Japanese stocks deserve continued attention. However, based on a balance of overall risk and return, investors should maintain a diversified allocation across high-quality bonds, reasonably priced stocks, cross-market assets, and alternative assets," J.P. Morgan Asset Management said.