J.P. Morgan warns: U.S. stocks may face risks of losing growth momentum.

Analysts at the giant bank JPMorgan have issued a research memo addressing their expectations regarding the performance of the U.S. stock market during the current period; economists have found that U.S. stocks have surged excessively recently, which may increase the risks of a correction and a shift in growth momentum.

JPMorgan also clarified that while the U.S. performance has generally been better compared to other regions during periods of global stock market downturns, U.S. stocks may limit their future gains.

In other words, U.S. stocks are currently trading at high prices – meaning elevated earnings per share and price-to-earnings ratios – so it seems that the earnings per share listed on U.S. stock indices may decline in the future, which could place a cap on the profits of the U.S. stock market.

Additionally, JPMorgan noted that U.S. stocks are priced higher compared to other global stock markets, and it appears that the relative profitability of the U.S. market compared to its global peers has approached a peak level.