JP Morgan Predicting CHAOS As Earnings Reports Suffer

Added: 2026-05-05

[00:00:00]JP Morgan is predicting a chaotic and volatile week as 50% of the entire stock market releases earnings and the market is pricing in chaos and crisis. New York is suffering from a tax base collapse after Mayor Mandani's insane socialist policies come to force and the Bank of England is predicting a global stock market collapse as the Iran war continues with no end in sight. All to be covered today on Stoic Finance with your host me Max. If you want to stay up to date on the financial news the legacy media don't want you to see and get the full truth of videos like this, like and comment under this video so the algorithm shows you my future videos.

[00:00:34]And of course, subscribe to the channel as well. And let's start off with JP Morgan's prediction of chaos in the markets for the week. Wall Street is heading into the busiest earnings week of the season and JP Morgan said to expect higher than usual volatility in the wake of results. Almost half of the Russell 1000, an index that tracks the largest US companies and encompasses roughly 93% of the American equity market, will report earnings this week.

[00:01:01]JP Morgan found that the options market is pricing in above average volatility due to uncertainty and an embedded geopolitical risk premium, meaning investors could be in for a bumpy ride.

[00:01:12]Options are pricing above average earnings volatility this quarter.

[00:01:16]implied moves are elevated, JP Morgan wrote, noting that the analysis doesn't actually signal the direction of the move, only the size. Now, companies with global exposure are more likely to see problems coming. In my opinion, the Iran war is absolutely devastating the European economies, and it's hitting the Arab states even harder. But the US has mostly just shrugged everything off, which is why the S&P 500, for instance, is sitting at all-time highs. Again, as an example, natural gas prices in the UK, they've almost tripled over the last 3 months or so, whereas in the United States, they're actually down by 20%.

[00:01:54]This obviously due to the fact that the US is mostly energy independent, whereas other companies rely heavily on importing energy in the Gulf region is simply unable to export anything right now. And low energy costs are probably the second or most third important thing for economic growth. That means stagnating economies in most of the world and struggling businesses who operate and get a large amount of their revenue from those regions as a result.

[00:02:23]Meta stock is expected to be the most volatile with a move of over 7%. Amazon and Microsoft are expected to move nearly 6 and a half and 6% respectively and Google stock is expected to move roughly 4%. Apple reports on Thursday and is expected to have the most muted stock move of 2 and a half%. It will be the iPhone maker's first earnings release since the announcing of Tim Cook stepping down. The most dramatic post- earnings move from the stocks analyzed is expected from Avis Budget, which is expected to gain or lose over 29% from earnings alone. The meme stock has made headlines recently for its dramatic rally and sudden collapse this week. JP Morgan said it's also eyeing potentially large swings in memory chip stocks like SanDisk and Seagate Technology following their recent rallies which some see as poised for a reversal. Internet stocks like Roblox, Reddit, and Etsy as well as consumer product stocks like Estee Lauder and Crocs are also expected to see doubledigit stock moves on earnings.

[00:03:21]So when JP Morgan said they're expecting volatility, they really do mean it mean it. It could be an absolutely chaotic uh week. But JP Morgan are also just as worried about large cap tech stocks as they are about stocks with exposure to the European or Arab market for a couple of reasons. First of all, they tend not to be terribly American, these large cap tech stocks, in the sense that they have loads of exposure to the rest of the world as they're so dominant in global markets. And of course, there's additional pressure around the trillions of dollars being pumped into AI with no discernable return yet that isn't related to the greater full theory. If companies like Google who have been pumping tens of billions into AI are missing their earnings report, and if they're not generating as much revenue from AI as expected, well, the markets may well turn and price in the end of the AI bubble, which would take out trillions and trillions of dollars from US equities. Again, the only real gains we've seen from AR so far are indistinguishable from a bubble. Yes, Nvidia is technically booking hundreds of billions in expected revenue from selling chips, but the purchases aren't funding those chips with a business plan or with expected revenue. They're funding it all with circular deals amongst one another, private funding rounds, and the hope that somehow AI will change the world and make them all trillions. But so far, there's just no evidence that AI is actually working.

[00:04:45]And it does appear to be a bubble.

[00:04:49]Moving on to New York. Mandani and New York Governor Kathy Hochel announced a proposal last week to tax pier dete homes owned by people with primary residences outside the city worth over $5 million. They estimate it could raise half a billion dollars in revenue annually, helping to close the city's budget gap and funding new affordability measures. The proposal has already invoked immediate backlash from business leaders and right-wing politicians.

[00:05:14]Significantly, the proposal would indeed tax the rich, a signature policy position of Mamanis that they have previously resisted in broader forms.

[00:05:23]The story continues. Now, Mamani is to be fair following his democratic mandate here to tax the rich. The problem is that the rich are incredibly mobile and there's already evidence that this raid is going to backfire and hurt New York by 12 times more than it will help. The tax is only expected to raise about $500 million a year, which for context is barely enough to cover 1% of what New York spend on education for children per year. But it's pushing the wealthiest and biggest contributors out of the city. The laugh curve rights in action, ladies and gentlemen. And the best example of this is of course Ken Griffin.

[00:06:04]Billionaire Ken Griffin is appalled after the mayor spotlighted his Manhattan penthouse in a viral video announcing the new pier tax. The hedge funds titan signaled he might even yank a $6 billion development project in the city. In a video last week, Mumani beamed as he stood in front of the Citadel founders 24,000t property at Central Park South which he scooped up for $238 million, the most expensive home sale in the country. quote, "We've secured a pier deter tax. This is an annual fee on luxury properties worth more than 5 million whose owners do not live full-time in the city. Like for this penthouse, which hedge fund CEO Ken Griffin bought for 238 million." Griffin, whose net worth is estimated by Forbes at 50 billion, wasn't amused. A top executive at his hedge fund sent a companywide email on Thursday blasting the mayor's comments and hinting at a potential reversal on a massive Midtown project. Quote, "We are about to commence the redevelopment of 350 Park Avenue, creating 6,000 highly paid construction jobs and supporting the creation of more than 15,000 permanent jobs in Midtown New York. The project, if we move forward, will entail more than $6 billion of spending." Now, let's be honest here. It's mind-numbingly stupid from a pragmatic point of view for Mandani to target literally one person with this announcement, especially when it's someone who was contributing so much to the New York economy. But it played well with leftists in New York. So, Manny simply doesn't care, even as it threatens to backfire to a ridiculous degree. If Ken Griffin cancels the plan to basically redevelop this building and build their new headquarters, New York will lose 1,200% of the entire expected gain from this tax raid all because one single man decided not to invest in New York. Now, if you extrapolate that out to the countless others in New York being targeted here, and it becomes so blindingly obvious why these leftist narratives always fail in the end.

[00:08:09]Finally for today, let's move on to the Bank of England. The Deputy Bank of England, the Deputy Governor of the Bank of England has warned investors to prepare for a fall in global stock markets. Sarah Breeden sounded the alarm about valuations being too high, adding she was kept awake at night by concerns about a number of risks crystallizing at the same time. She spoke as the S&P 500 and NASDAQ on Wall Street both hit new records this week despite the Iran war threatening to push up global inflation and damage growth. The price of oil climbed as high as $107 a barrel on Friday with no sign of peace talks.

[00:08:41]There's a lot of risk out there and yet asset prices are at all-time highs. We expect there will be an adjustment at some point. She said she was concerned about a number about a combined hit from a major macroeconomic shock happening at the same time as other risks like a downturn in confidence in the private credit sector or a fall in AI valuations. What happens in that environment and are we prepared for it?

[00:09:03]What are we watching is how might those prices fall? Will there be a sharp adjustment downwards? And if there is such an adjustment, how will that affect the economy? Not saying it will happen today, tomorrow or in 12 months time.

[00:09:13]It's ensuring that if it does happen, the system is resilient. So the Bank of England's deputy governor is literally sounding the alarm and the things concerning her are the exact same things concerning everyone else in the market as well. An AI bubble that is gobbling up trillions of dollars with no payoff in sight. The Iran war continuing with supply side shocks present in almost every country in the world. The only country really insulated is the United States and private credit collapses threatening the stability and solveny of the global banking system. And then finally to top everything off, valuations at alltimes highs with no sign of any risk really being priced into American markets. Now, in fairness, US markets are not as exposed to the shocks from the Iran war. But on the other side, they are far more exposed to the AI bubble, so I'm not sure there really is a reason to be particularly buoyant about US equities on this news either. Now, this is a little bit of a new style of a video for me, covering a few main topics for the day in one video instead of just the one. The idea here is that I'd really like to make this a daily video, sort of like your one-stop shop for what is actually going on with financial news. So, if you like this content, please let me know in the comments down below. And the same if you don't like it as well. Tell me so I can make changes or improvements and give you the content that you actually want.

[00:10:32]And if you just want to stay up to date and follow financial news the legacy media don't want you to see, subscribe to this channel, like and comment under this video so my next videos show up for you on the algorithm. Or if you want to learn more about how BlackRock is being sued for running an illegal international credit cartel, click the video on the right hand side of the screen here. Black Rockck are running a global private credit cartel and they're currently being sued over it by their own investors. You heard correctly.

[00:10:57]Black Rockck is colluding with its supposed competitors, other massive private credit and asset managers and private equity firms to screw over the smallest investors in companies.