JPMorgan: A weaker US dollar will benefit global stock markets, rather than weighing on risk assets.
Feb 14, 2026
JPMorgan Chase analysts believe that although investors are concerned that exchange rate fluctuations may impact the stock market, a weaker dollar should support the stock market rather than harm it.
JPMorgan Chase pointed out that despite recent volatility in commodities, bonds, and crowded trades, economic growth momentum remains solid. The Fed funds rate futures are currently pricing in about 55 basis points of rate cuts by the end of the year, providing a supportive backdrop for risk assets. JPMorgan Chase is bearish on the dollar, and historical data shows that a weaker dollar is usually consistent with stronger stock market performance, especially in emerging markets.
JPMorgan Chase maintains a positive attitude towards emerging markets and commodity stocks, and recommends that investors buy metal assets on dips. In the European market, although a stronger euro may affect approximately 25.00% of dollar revenue translation, strong growth during the euro's appreciation usually offsets this adverse effect, and cyclical industries usually rise along with the euro