Consumers have spent all of their excess savings from the pandemic. That’s just one reason why stocks are poised to fall, JPMorgan says

• US consumers have spent all of their excess savings from the pandemic, according to JPMorgan.
• The bank highlighted the softening of the consumer as one reason why stocks are poised to continue their decline.
• “Even with a robust labor market, US corporates are seeing demand and prices soften with ongoing margin pressure.”

A weakening consumer is just one reason why the stock market is poised to continue its decline, according to JPMorgan’s Marko Kolanovic. 

In a Thursday note, he said consumers have spent down the entirety of their excess savings from the pandemic, which at one point totaled more than $2 trillion. That tailwind is now over, according to the bank, and consumer spending could soften further as student loan payments restart in October.