New York, Feb 24, 2026, 11:12 EST — Regular session
- JPMorgan slipped roughly 1.4% in early trading, extending Monday’s 4.2% drop.
- The bank stuck with its 2026 cost forecast and repeated its existing targets during a New York company update.
- Tariff headlines and fresh AI-fueled swings are front of mind for traders, all playing out against the backdrop of deal activity.
JPMorgan Chase & Co (JPM.N) slipped 1.4% to $293.58 late Tuesday, after briefly dipping to $291.40. On Monday, the stock dropped 4.2%, finishing the session at $297.67.
JPMorgan kept the focus on its New York company update Monday, holding its 2026 adjusted expense forecast at $105 billion and sticking with a 17% return on tangible common equity target. The bank projected first-quarter investment-banking fees to climb by the mid-teens, with a similar bump in trading revenue. “We started the year strong,” said Doug Petno, while CFO Jeremy Barnum pointed to “tangible benefits” from AI. CEO Jamie Dimon told investors, “I’m here for a few years as CEO.” JPMorgan’s market value is now over $800 billion — more than Bank of America and Citigroup put together. Consumer metrics are “solid,” according to Marianne Lake. UBS analyst Erika Najarian said investors increasingly pick money-center banks as likely winners in the AI race. Reuters
The timing comes as the market is still trying to find direction after Monday’s steep losses, which hit financials and software stocks especially hard. U.S. indexes edged up Tuesday, with investors juggling new AI developments and an evolving U.S. tariff picture—a temporary 10% global tariff is in place, and there’s uncertainty over talk of a 15% rate. “The market doesn’t only have one particular worry,” said Peter Cardillo of Spartan Capital Securities. Reuters
A Citrini Research report going viral has sparked worries about an AI-driven slump hitting by 2028, with possible knock-on effects for jobs and segments of the credit market. “I would take it seriously, not literally,” Nick Ferres said. Ed Yardeni observed that traders seem to believe “AI is augmenting workers’ productivity rather than making them extinct.” That nervousness is pushing investors out of software stocks and towards what they see as the safer parts of the AI supply chain, according to Reuters. Reuters
JPMorgan faces this debate firsthand. The bank’s management touts AI as a tool to boost productivity and protect margins, though tech spending continues to climb.
Then there’s the cycle itself. While trading desks often capitalize on volatility—clients hedging, shifting positions—dealmaking can grind to a halt if boards shy away from major decisions and underwriting risk.
Consumer credit’s another metric investors track closely. Card delinquencies or charge-offs can spike quickly in the data—and when the stock’s already facing headwinds, those changes carry extra weight.
Still, backing AI isn’t risk-free. Should costs outpace income, or fresh tariff jitters start fueling broader concerns about growth, the “best-in-class” narrative takes a hit—and bank stocks can slip fast.
At the moment, traders are looking to JPM for signals on both deal flow and the strength of the U.S. consumer, with conflicting forces in play. The coming sessions should clarify if we’re just seeing noise after Monday’s sharp drop—or if there’s something deeper developing.
JPMorgan will report first-quarter 2026 earnings on April 14, with a conference call set for 8:30 a.m. Eastern. Fee guidance and evidence of returns on tech investments will be top of mind for investors tuning in.
