JPMorgan Sees Stable Stocks Ahead Even With Weaker Dollar Expected

JPMorgan Global Research maintains a resilient outlook for global equity markets in 2026, forecasting moderate gains for U.S. and global stocks even as it expects the U.S. dollar to weaken over the year. The bank’s 2026 market outlook sees double-digit returns across developed and emerging equity markets, driven by robust corporate earnings, ongoing AI investment, and supportive macro fundamentals.

JPMorgan’s strategists also predict a bearish bias on the U.S. dollar, reflecting slower U.S. growth expectations and interest-rate differentials that favour other major currencies. A softer dollar can help support equities — especially exporters and multinational companies — by improving overseas earnings and lifting emerging-market assets.

Despite risks such as slower labor demand and lingering inflation, the combination of strong earnings momentum and accommodative monetary conditions bolsters the case for a stable to moderately positive stock market throughout 2026.

Market Implication: Investors may benefit from diversified equity exposure, positioning for gains even in a weaker dollar environment where global risk assets gain broad support.