Markets faced renewed pressure on Thursday and overnight on Wednesday after the fears that the US could plunge into a recession were stoked once again.
JP Morgan raised its predictions that the country would slip into two consecutive quarters of GDP contraction from a 25% chance to a 35% likelihood.
Should the US fail to fall into a recession this year, the bank predicts there is a 45% chance it will happen before the second half of 2025.
JP Morgan also warned that the effects of carry trades, which have been weakening the market since the BoJ hiked rates last week, will continue, with nearly a quarter still required to be unwound.
Additionally, boss Jamie Dimon expressed a lack of confidence in the US achieving its goal of a 2% inflation rate, blaming the "remilitarisation of the world" due to threats from Russia and China.