Mislav Matejka, strategist at JPMorgan Chase, pointed out that if the Federal Reserve cuts interest rates due to economic weakness or political pressure, it could cause fluctuations in the stock, bond and foreign exchange markets. The bank's analysis of data since 1980 shows that the US dollar usually weakens during interest rate cut cycles, US bond yields fall, while emerging market stocks perform relatively well. Mike Wilson, analyst at Morgan Stanley, added that equity markets tended to anticipate policy shifts but that gains could be stymied if employment data deteriorated significantly, with the S & P 500 up 5 per cent this year, below the 21 per cent rise in European equities.