Wells Fargo analysts join JPMorgan traders in cautious stance on US stocks

Wall Street’s mood is shifting. Wells Fargo equity strategist Ohsung Kwon has joined JPMorgan’s trading desk in adopting a more cautious outlook on US equities, marking the second major bank this week to flash yellow ahead of what promises to be a turbulent stretch for markets. What triggered the downgrade JPMorgan’s market-intelligence team, led by Andrew Tyler, shifted to a “tactically cautious” stance on August 31, 2026. The catalyst was hawkish commentary from Federal Reserve Chairman Kevin Warsh, which pushed expectations higher for a September interest rate hike. This wasn’t JPMorgan’s first tap on the brakes, either. The bank had already made a tactical downgrade back in June 2026, suggesting that the current posture is part of a broader pattern of incrementally dimming enthusiasm rather than a single knee-jerk reaction. Wells Fargo’s Kwon had been sounding similar notes since at least June, when he flagged that the AI-driven market rally was running out of positive catalysts. September’s seasonal curse and midterm math September stands alone as the weakest month for US equity returns. Researchers have documented this pattern across decades of market data, and institutional ...