The recent strong growth in U.S. stocks masks a large number of risks to the country's economy arising from the latest macro statistics, JPMorgan said. GDP data in the first quarter signaled the threat of stagflation, Business Insider reports the bank's assessment.

The wave of positivity in the stock market was fueled by positive corporate reports and the expectation that the U.S. economy would make a soft landing. This belief was based on earlier and better economic growth figures, as well as the view that inflation would fall if prices in the troubled rental real estate and auto insurance sectors stopped rising. However, those hopes were dashed with the release of the latest economic statistics showing lower GDP growth and stronger inflation.

As JPMorgan said, there is strong evidence that the downward trend in inflation has stopped globally.