JPMorgan: The Fed Could Trigger a 'Massive Stop Loss Order' in the S&P 500 if Liftoff Goes Awry

Analysts at JPMorgan Chase say the Federal Reserve has 670 billion reasons to deliver a "dovish hike" if it elects next week to raise interest rates for the first time in nine and a half years.

The consensus view is that the central bank will take care to avoid upsetting risk appetite at the time of liftoff by emphasizing a gradual glide path higher for rates, lowering the "dot plot" of preferred policy rates, or inserting language that ties additional hikes to actual increases in inflation. A return to robust monthly jobs growth and nascent signs of accelerating wage increases have, however, left more than a few economists doubting that a hike will be accompanied by overtly dovish messaging.