JPMorgan Says Dovish Fed Could Spark 10% S&P Rally

The S&P 500 could surge at least 10% in one day if the central bank raises interest rates by a slower-than-expected half of a percentage point, and Chair Jerome Powell signals willingness at the press conference to tolerate elevated inflation and a tightening labor market, according to the bank’s sales team including Andrew Tyler. The scenario is the “least likely” to materialize, yet the “most bullish” outcome for equity investors, the team wrote in a note to clients on Monday.