NEW YORK, Feb 12, 2026, 11:33 (EST) — Regular session
- JPMorgan slipped roughly 2.9% to hover near $302, hitting a session low just around that mark
- Big banks took a hit as well; Citigroup and Bank of America each fell over 3%
- Traders are gearing up for Friday’s U.S. January CPI report, following Wednesday’s jobs data that tempered expectations for rate cuts
Shares of JPMorgan Chase & Co fell close to 3% on Thursday, following a broader sell-off in U.S. bank stocks during late morning trading. The stock dipped 2.9% to $301.93, fluctuating between $301.70 and $313.56 earlier in the session.
The timing is crucial. Wednesday’s stronger-than-expected January U.S. jobs report pushed traders to reconsider how fast the Federal Reserve might ease rates. All eyes now turn to Friday’s January consumer price index (CPI) release. According to CME’s FedWatch tool, the probability of rates staying put in June jumped to 41% from 24.8%, though markets still price in at least one 25-basis-point cut (0.25%) by then. Julia Hermann, global market strategist at New York Life Investments, noted that the change in rate-cut expectations was “quite well” received, as investors took the jobs numbers to mean the economy could withstand fewer rate reductions. Reuters
For banks, the interest-rate trajectory matters immediately: it directly affects the margin between loan earnings and deposit costs, and can swiftly shift market sentiment.
On Thursday, other major lenders followed suit. Bank of America slipped 3.3%, Citigroup took a 4.1% hit, and Wells Fargo dipped 2.8%.
Another concern rippling through the financial sector centers on AI eating into fees. On Tuesday, wealth-management startup Altruist rolled out AI-powered tax-planning tools on its Hazel platform. That move hit brokerage stocks hard, sending shares of LPL Financial, Raymond James, Charles Schwab, and Ameriprise sharply down. Morgan Stanley’s stock also took a hit.
That “AI headline risk” has morphed into its own market issue. Reuters reported Thursday that investors now view AI as both a growth driver and a threat, triggering sharp selloffs in companies linked to these new technologies. Alex Morris, CEO and CIO at F/m Investments, cautioned that such headlines can spark “a lot of volatility,” particularly in individual stocks. Reuters
J.P. Morgan Securities plc has put out a pre-stabilisation notice for two benchmark euro-denominated senior unsecured note issues. The stabilisation period is set to last until March 12. This process involves trading activity meant to support the bond’s price shortly after it hits the market.
The risk is straightforward: if Friday’s CPI comes in hotter than expected, hopes for rate cuts could be delayed once more, weighing on bank stocks. On the other hand, a cooler number might reverse the trend—if only briefly.
Friday brings the U.S. January CPI report, seen by traders as the crucial near-term trigger for rate forecasts in the coming week.
