JPMorgan Chase & Co. (NYSE:JPM) CEO Jamie Dimon, who correctly flagged trouble before the 2008 Lehman Brothers collapse, is now cautioning that Wall Street’s expectations for S&P 500, tracked by SPDR S&P 500 (NYSE:SPY) earnings growth could plummet from 12% to 0% as tariff impacts ripple through the economy.
What Happened: “I think earnings estimates will come down, which means PE [Price-to-Earnings ratio] will come down,” Dimon said at the bank’s annual investor day, suggesting equity valuations face downward pressure. He described current asset prices as “kind of high” while credit spreads remain “kind of low.”
Hedge fund manager Dan Niles highlighted Dimon’s track record on X, noting, “Dimon warned of an economic ‘hurricane’ in June of 2022 before the banking crisis in March of 2023.” Niles emphasized JPMorgan’s unique perspective, writing, “With $4.4 trillion in assets, JPM …