New York, January 13, 2026, 06:05 EST — Premarket
JPMorgan Chase shares edged up 0.6% in premarket trading as investors braced for the bank’s quarterly earnings and a U.S. inflation report that could shift rate expectations. Stock index futures dipped slightly, with S&P 500 e-minis down 0.14% in early action. (Reuters)
Why it matters now: JPMorgan is the first major U.S. bank to weigh in. Traders often use its remarks as an early gauge of deal activity, trading demand, and borrower sentiment in an economy that’s still firing on all cylinders.
This is also about rates. Bank earnings and valuations can shift quickly as the market recalibrates its view on the Federal Reserve’s next move, since lending margins and loan demand hinge on where interest rates are headed.
U.S. stocks wrapped up Monday at record highs, buoyed by strong tech shares and a 3% surge in Walmart. The day kicked off on edge after U.S. prosecutors launched a criminal probe into Fed Chair Jerome Powell, yet “the market is taking it in stride for now,” noted Peter Cardillo, chief market economist at Spartan Capital Securities. (Reuters)
Bank stocks stumbled after President Donald Trump proposed a one-year cap of 10% on credit-card interest rates, limiting what lenders can charge. JPMorgan dipped 2.5% early Monday, while Bank of America fell 1.6%, Reuters reported. UBS Global analysts said implementing such caps would require “an Act of Congress.” J.P. Morgan’s Vivek Juneja cautioned the move “could push consumers towards more expensive debt.” (Reuters)
A Reuters report highlighted Wall Street’s skepticism about a federal cap making it through Congress, pointing out that such a move requires legislation and a unilateral effort would probably be tied up in legal battles. TD Cowen noted a card rate cap “can only be done by Congress,” while Barclays said the president has “limited ability” to push it through alone. (Reuters)
Investors eye JPMorgan’s results closely for signs of strength in investment banking and markets, along with management’s take on credit quality amid persistently high borrowing costs. New details on card balances and charge-offs could carry extra weight now that Washington has reentered the pricing debate.
The downside risk is clear this morning. If inflation comes in hotter than expected, yields could spike, undermining the rate-cut story that’s been supporting bank shares and the wider rally.
The next major event is the U.S. Consumer Price Index report, a key measure of household inflation, set for release at 1330 GMT (8:30 a.m. ET). Traders will focus on that data initially, then shift attention to the earnings and outlook from the first major banks reporting this quarter. (Reuters)
