JPMorgan traders have called the rally so far, but are losing conviction

JPMorgan's trading desk called the S & P 500 rally to all-time highs perfectly. Now, it's getting a bit worried. The traders noted Monday that while they maintain their "tactically bullish" stance on stocks — a call they made in August before the benchmark surged to record levels — they do so now "with lower conviction." They cited the potential for higher inflation and a possible re-escalation in global trade conflict for their softer stance on stock prices. "The combination of public and private company comments on inflation reflect that more tariff-induced cost passthrough is coming, though the speed and magnitude remain unknown. Further, labor supply is declining, and rate cuts may spur labor demand triggering wage inflation which tends to be sticky," the trading desk wrote to clients