JP Morgan CEO Calls US Stock Market Inflated

JPMorgan CEO Jamie Dimon speaks at The Institute of International Finance annual membership meeting at the Ronald Reagan Building in Washington on Oct. 24, 2024. Kevin Dietsch/Getty Images

The head of one of the world’s largest banks said the soaring U.S. stock market may be more hype than substance.

In a Jan. 22 interview with CNBC, JPMorgan Chase CEO Jamie Dimon said the domestic stock market is “inflated” and that he is more cautious than others in the financial sector.

Since President Donald Trump was inaugurated on Jan. 20, the Dow Jones Industrial Average index has increased by about 1.4 percent, from about 43,528 to about 44,138 as of midday on Wednesday.

Over the same period, the S&P 500 Index rose by about 1.4 percent. Since Trump was elected in November 2024, the S&P 500 is up by about 2 percent.

The Dow is a market indicator composed of 30 leading U.S. stocks. The S&P 500, which includes 500 of the top publicly traded companies, is viewed as a more accurate barometer of stock market performance.

Asset prices are “elevated, and you need fairly good outcomes to justify those prices,” Dimon said in the interview, which took place at the World Economic Forum (WEF) meeting in Davos, Switzerland.

The annual summit, hosted by the WEF in the Swiss Alps, often attracts the biggest names in global finance and politics. Trump is expected to appear virtually at the WEF meeting on Jan. 23.

During the same interview, Dimon said his skepticism is rooted in high deficit spending—which he called “a global issue, not just an American issue”—and stubborn inflation.

Also on Wednesday, Goldman Sachs CEO David Solomon said stock market valuations are “high.” However, he said American companies are optimistic about the potential for the Trump administration to reset the U.S. regulatory environment.

“We are coming off of a very, very tough regulatory environment across all industries,” Solomon said on Wednesday in Davos.

Solomon said a more relaxed regulatory environment could encourage more mergers and acquisitions, which could accelerate domestic economic growth.

Also in Davos on Wednesday, New York Stock Exchange President Lynn Martin said she expects many initial public offerings to be announced in the coming weeks and months.

Like Solomon, she credited the market activity to positive feelings surrounding the Trump administration’s posture toward American business.

“It feels as though the pro-growth agenda is going to be something that is front and center, not just for him but for his entire cabinet,” Martin said in an interview with Bloomberg on Jan. 22.

Reuters contributed to this report.