JPMORGAN WARNS OF KEY MARKET RISKS HEADING INTO 2026 JPMorgan warns that while 2025 has been strong for stocks—S&P 500 up 14% YTD, boosted by AI excitement—the outlook for 2026 is uncertain. Joyce Chang, JPMorgan’s head of research, said markets face risks despite positive factors like higher capex, AI adoption, and deregulation. Key concerns include labor market weakness, cost-of-living pressures, and inflation. Potential market risks for 2026: 🔸 Tariffs: The Supreme Court may challenge Trump-era tariffs, putting 350B in annual revenue at risk, which could affect the projected 6.2% GDP deficit. 🔸 U.S.-China relations: Rising tensions and China’s control over critical materials could disrupt supply chains. 🔸 Midterm elections: Democrats could flip the House, increasing legislative-executive conflict and political uncertainty. Overall, JPMorgan sees upside from economic tailwinds but notes significant downside risks.(*Walter Bloomberg)