Stock markets historically rise after Fed chairs warn of high valuations

Federal Reserve Chair Jerome Powell recently stated that equities are "fairly highly valued," prompting JPMorgan to analyze how markets typically respond to such warnings from Fed leadership. According to JPMorgan strategist Fabio Bassi, the S&P 500 has historically performed well following similar cautions from Powell and previous Fed chairs including Alan Greenspan, Ben Bernanke, and Janet Yellen. Data shows the benchmark index returned an average of 8.5% six months after such statements and nearly 13% in the following year.