JPMorgan Chase CEO Jamie Dimon, speaking at the Economic Club of Chicago, warned that government spending is inflationary: it boosts corporate profits and makes people feel good, but that feeling can prove painful later. Treasury Department data cited show the U.S. spent $7.40 trillion in fiscal 2026 while collecting $5.40 trillion, a $1.99 trillion deficit, up $217 billion from fiscal 2025. Dimon said the problem is not one piece of legislation but years of overspending, and that JPMorgan prepares for scenarios such as a 40% stock price drop. The article notes U.S. consumer prices have risen 29.8% since the start of 2020, and that $100 in 2026 has the purchasing power of $11.65 in 1970. It also covers gold, up 125% over five years, and real estate, where the S&P Cotality Case-Shiller U.S. National Home Price NSA Index rose 84% over ten years, presenting both as inflation hedges while noting high home prices and the work of managing tenants as drawbacks.
Summary written by Upside AI from the original article. Read the source for full details.
Read the original on Yahoo Finance ↗
Keywords
JPMpublic spendinginflationgoldreal estate
Open a keyword to see other news on the same topic.
Related tickers and likely impact
JPM
▼ Likely negativeJPMorgan Chase
Relevance: low
| Market | US stocks |
|---|---|
| Sector | Financials |
| Industry | Diversified Banks |
| Market cap | $894.6B |
| Close on 10/30/2026 | 337.11 |
| Change that session | -1.88% |
DXY
• NeutralRelevance: low
| Market | Currencies |
|---|---|
| Close on 10/30/2026 | 101.96 |
| Change that session | +0.08% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
Related news
- Ho Chi Minh City Party chief urges businesses to pay Tết bonuses in November or December
Ho Chi Minh City Party Secretary Trần Lưu Quang said the city encourages businesses to pay Tết bonuses in November or December 2026, so workers can shop early and avoid last-minute rushes. Instead of simply displaying goods, the city aims to put money in people's hands through e-commerce, digital commerce, the MoMo e-wallet and buy-now-pay-later credit packages with banks, alongside major music and entertainment events. He said hotels, shops and food stalls at Bến Thành Market have grown busier, though no detailed statistics are yet available, and many large hotels will cut room rates until year-end. The city is auctioning land plots worth over VND 90,000 billion but will hold off on sales if prices fall short of expectations, saving resources for 2027 and beyond. It is also speeding up public investment disbursement and capital for BT projects.
- JPMorgan Chase CEO Jamie Dimon Warns That Inflation, Rising Asset Prices, and More "Continue to Shift Under the Surface."
JPMorgan Chase's third-quarter earnings per share were $5.57, below the $5.93 Wall Street expected, while revenue rose 8% to $50.17 billion against a forecast of $51.23 billion. Commercial and investment banking revenue grew 14% year over year but fell 8% from the previous quarter, and the stock has dropped 10% over the past few weeks. CEO Jamie Dimon said the bank is enjoying strong market activity but does not know when it will stop. He listed large fiscal deficits, sticky inflation, elevated asset prices, rising interest rates and geopolitical conditions as forces that 'continue to shift under the surface,' saying they may be manageable but the bank remains prepared for a wide range of outcomes. The article notes U.S. debt has reached $40.25 trillion.
- What Canadian Investors Should Know About JPMorgan's 2027 Warning
JPMorgan warns that fertilizer supply disruptions, geopolitical conflict and a developing El Niño could push global food inflation to roughly 5% in the first half of 2027, up from 2.8% a year earlier. Its focus is nitrogen fertilizer rather than potash, though potash is still part of the crop-yield equation, and Canada produces roughly 30% of the world's supply. USDA forecasts U.S. grocery prices to rise 1.8% in 2027, down from its initial 2.1% forecast, so the article treats JPMorgan's warning as a scenario to watch rather than a prediction of runaway inflation. Buffalo Potash (TSXV: BUFF) completed all five wells at its Disley project on September 25, but the article notes drilling is not production, and brine circulation is the next test. The project has no established mineral reserves yet, and first production is targeted for Q1 2027.
- US banks post strong earnings but economic risks cloud the sector’s outlook
Major banks JPMorgan Chase, Citigroup, Wells Fargo and Goldman Sachs all reported higher profits than a year earlier, but warned that higher rates and rising prices could weigh on consumers. JPMorgan earned $15.3 billion ($5.57 a share), up from $14.4 billion, yet missed analysts' expectations of $5.93 a share, the first such miss in nearly three years, with a $658 million investment securities loss and a 12% rise in expenses. Goldman Sachs earned $5.29 billion ($17.01 a share) as equities revenue jumped 72%, while Citigroup's profit rose 40% and beat expectations. Wells Fargo posted $5.95 billion ($1.87 a share), beating forecasts. According to FactSet, earnings-per-share growth for S&P 500 companies is expected to be nearly 30% from a year earlier.
- Big Week of Data: Inflation & Q3 Earnings
Two air strikes on Riyadh's airport over the weekend killed 14 people and injured more than 300, with Iran-aligned Houthi rebels from Yemen blamed; nearly 100% of flights there were cancelled. The conflict that began with U.S. and Israeli strikes on Iran in late February has now spread across the wider Middle East. Spot oil rose about 1.5%, with WTI at $93 per barrel and Brent at $106, below earlier-2026 highs, while the 10-year yield stood at 5.24%, the 2-year at 4.80% and the 30-year at 5.60%. The week's main event is the September CPI report, expected to rise 30 bps from last month's 3.4%, alongside PPI, which was 5.4% headline and 4.6% core last month. Q3 earnings season kicks off in earnest, with JPMorgan, Citigroup, Wells Fargo and Goldman Sachs reporting Tuesday.
- Bank of America vs. JPMorgan Chase: Diverging Quarterly Revenue Trends for These Financial Giants
Bank of America's quarterly revenue has been largely flat, while JPMorgan Chase has shown consistent growth over the last 8 quarters. Bank of America faces multiple securities fraud class actions and a $1.2 billion penalty from the U.S. Treasury over anti-money laundering rules, and it acquired cybersecurity firm MDSec Consulting Limited and introduced new generative AI capabilities. JPMorgan entered a $20 billion asset management partnership with the Qatar Investment Authority and removed foreign transaction fees from certain credit cards. The article attributes JPMorgan's steadier results to its strong Wall Street businesses, while Bank of America relies more on consumer banking, where it says squeezed American consumers may spend less on financial services.
Related markets
Latest news
- The stock market's front-runners stumbled in October. Here's where the smart money is moving now.
U.S. stocks reversed sharply in October as worries about shrinking free cash flow and rising borrowing costs disrupted the rally in AI-related shares.
- Pfizer Just Hit a 52-Week High. Is the Turnaround Finally Real?
Pfizer (PFE) shares are up 20% year to date as the company emerges from its post-pandemic slump, though the article says the recovery is still at an early stage. Last quarter, revenue rose 3% and beat Wall Street expectations, helped by Eliquis and cancer drugs that offset lower COVID-19 product sales. Pfizer raised its full-year revenue guidance, reiterated adjusted EPS of $2.80 to $3 per share, and sees up to $6.7 billion in cost savings through 2029. The stock trades at about 10 times estimated 2026 earnings, while sell-side forecasts see 2027 EPS slipping from $2.96 to $2.88. Risks include clinical trial setbacks and the looming loss of patent protection for Eliquis and Ibrance.
- Texas Instruments Has Raised Its Dividend for 23 Years. Here Are 3 More Tech Income Stocks
The article profiles Nasdaq-listed tech blue chips that have steadily raised dividends on large free cash flow, aimed at income-focused investors. Texas Instruments (TXN) yields 1.83% after a 7% increase to $1.52 per quarter, marking 23 consecutive years of dividend raises, with trailing free cash flow of $8.4 billion. Cisco (CSCO) yields 1.51%, has raised its dividend for 15 straight years, and returned 99% of fiscal 2026 free cash flow to shareholders through dividends and buybacks. Broadcom (AVGO) yields 0.74%, and its dividend used about 22.6% of a record $13.7 billion quarterly free cash flow. Risks include $1.6 billion of TXN's trailing free cash flow coming from CHIPS Act incentives, and Cisco's gross margin falling from 68.4% to 66.3%.
- Wall Street's favorite stocks are in their worst slump since 2010: Chart of the Day
Piper Sandler's data shows S&P 500 stocks with the largest share of analyst Buy ratings have trailed those with the smallest share for most of 2026, a year-over-year gap that is the third-worst in its data back to 1995, behind only 2001–02 and 2010. This week Alphabet had its worst month in history, Intel its worst day since 1974, and the Nasdaq its biggest daily drop since June, as Big Tech results revived worries about AI spending. Six of Piper's nine favored names are down this year, the exceptions being Nvidia, Arista Networks and Comfort Systems, while nearly all of the least-loved stocks are up. Because most investors own these favorites through index funds or 401(k)s, the slump affects many portfolios, and the article adds that when analyst enthusiasm is already priced in, disappointments sting more. Piper's favorites had been up nearly 18% on average in spring before the AI trade began to unwind.
- Coca-Cola and Procter & Gamble Are Up This Month. Which Dow Dividend Stock Is the Better Buy Now?
Coca-Cola (KO) and Procter & Gamble (PG) have both risen sharply over the past month or two, which the author attributes mainly to investors moving from AI-related stocks into defensive consumer staples after a mid-October selloff. P&G's fiscal first-quarter results beat estimates, with organic sales growth accelerating to 4% on higher volumes, while Coca-Cola's Q3 revenue rose 7% to $13.4 billion and it raised its 2026 guidance to at least 5% organic revenue growth and at least 11% non-GAAP earnings growth. P&G closed its $3.9 billion acquisition of Thorne this month, and Coca-Cola will take over KFC's U.S. beverage business in 2027, ending PepsiCo's supply role. The author argues the rally reflects short-term sentiment rather than a verdict on long-term prospects, and views P&G as more reasonably priced at 23 to 24 times forward earnings versus 26 to 28 times for Coca-Cola, which has risen more than 32% this year.
- Nvidia's Megaspeed ties show potential blind spots in the U.S. effort to block China from accessing advanced chips
According to experts, CEO Jensen Huang's business meetings are routine practice. The article says existing U.S. export controls largely miss cloud computing, pointing to a possible gap in efforts to keep advanced chips from China.
Get the briefing on Telegram or Zalo
Join the Upside Telegram channel or Zalo group for the Vietnam stocks and gold briefing at 8:00 and 19:00 (Vietnam time) on trading days, plus a weekly wrap on Saturday morning.