NEW YORK, Feb 12, 2026, 11:33 (EST) — Regular session
- JPMorgan down about 2.9% near $302, after touching a session low around $302
- Big banks also weaken, with Citigroup and Bank of America down more than 3%
- Traders brace for Friday’s U.S. January CPI report after Wednesday’s jobs data cooled rate-cut bets
JPMorgan Chase & Co shares slid nearly 3% on Thursday, tracking a fresh drop across U.S. bank stocks in late morning trade. The stock was down 2.9% at $301.93 after swinging between $301.70 and $313.56.
The timing matters. A stronger-than-expected January U.S. jobs report on Wednesday forced traders to rethink how quickly the Federal Reserve can cut rates, and the next test is Friday’s January consumer price index (CPI) report. CME’s FedWatch gauge showed the chance of rates holding steady in June rose to 41% from 24.8%, though traders still see at least one 25-basis-point cut (a basis point is 0.01 percentage point) by then. Julia Hermann, global market strategist at New York Life Investments, said the shift in rate-cut pricing went down “quite well” because investors read the jobs data as a sign the economy can handle fewer cuts. (Reuters)
For banks, the interest-rate path hits quickly: it feeds into what lenders earn on loans versus what they pay out on deposits, and it can change sentiment in a hurry.
Other big lenders moved the same way on Thursday. Bank of America fell 3.3%, while Citigroup dropped 4.1% and Wells Fargo slid 2.8%.
There’s also a second thread running through the financial sector: anxiety over where artificial intelligence starts cutting into fees. On Tuesday, wealth-management startup Altruist introduced AI-enabled tax-planning features on its Hazel platform, triggering sharp drops in brokerage stocks including LPL Financial, Raymond James, Charles Schwab and Ameriprise, while Morgan Stanley also fell. (Reuters)
That “AI headline risk” has turned into a market problem of its own. Reuters reported on Thursday that investors are starting to treat AI as both a growth story and a threat, with sudden selloffs hitting firms seen as exposed to new tools. Alex Morris, CEO and CIO at F/m Investments, warned the headlines can drive “a lot of volatility,” especially in single names. (Reuters)
On the company side, J.P. Morgan Securities plc published a pre-stabilisation notice tied to two benchmark euro-denominated senior unsecured note issues, with the stabilisation window expected to run through March 12. Stabilisation is trading that can support a new bond deal’s price soon after launch. (TradingView)
But the risk is simple: if Friday’s CPI runs hotter than markets expect, rate-cut hopes could get pushed out again and keep pressure on bank shares. A cooler print could flip the trade the other way, at least for a day.
Next up is Friday’s U.S. January CPI report, which traders are treating as the key near-term catalyst for rate expectations into the week ahead. (Schwab Brokerage)
