New York, Jan 17, 2026, 13:54 EST — Market closed.
- JPMorgan is under the spotlight again after President Donald Trump announced plans to sue the bank over alleged “debanking.”
- The Financial Select Sector SPDR Fund (XLF) closed Friday nearly unchanged, though bank and regional bank ETFs saw declines.
- Bank earnings rolled in, showing PNC surging while Regions slipped, hurt by its outlook and fee momentum.
JPMorgan Chase and the broader U.S. financial sector face a tense long weekend after President Donald Trump announced plans to sue the bank, alleging it “debanked” him. Trump also denied ever offering JPMorgan CEO Jamie Dimon the Federal Reserve chair position, contradicting a report from earlier this week. (Reuters)
The timing is critical as financial stocks have already been shaky amid policy speculation and early bank earnings. On Friday, the S&P 500 financial sector nudged up 0.1% but still posted its worst weekly drop since October, dragged down by concerns over Trump’s plan to cap credit card interest rates at 10% for a year; U.S. markets will be closed Monday for the Martin Luther King Jr. holiday. (Reuters)
The Financial Select Sector SPDR Fund (XLF), which tracks major U.S. financial firms, ended Friday roughly 0.1% higher at $54.44. But bank-centric ETFs struggled: the SPDR S&P Bank ETF (KBE) slipped around 0.5%, and the SPDR S&P Regional Banking ETF (KRE) dropped about 0.6%.
JPMorgan climbed roughly 1.0% to $312.47, with Bank of America up around 0.7% at $52.97. Wells Fargo, however, dipped about 0.7% to $88.38. On the other hand, Goldman Sachs dropped roughly 1.4% to $962.00, and Morgan Stanley slipped about 1.1% to $189.09.
Regional banks offered one of the clearest glimpses into how patchy this earnings round might be. PNC Financial climbed roughly 3.7% to $223.18 after its Q4 profit topped expectations, boosted by a revival in M&A fees and a rise in net interest income — the gap between loan earnings and deposit costs. “Credit metrics were stable at excellent levels,” noted Oppenheimer’s Chris Kotowski. (Reuters)
Regions Financial slipped roughly 2.6% to $27.77 despite posting higher fourth-quarter profits. The spotlight was on the outlook, where Regions projected 2026 interest income growth of 2.5% to 4%, falling short of analysts’ estimates. CEO John Turner highlighted record performance in wealth management and treasury management for 2025. (Reuters)
M&T Bank dipped about 0.2% to $212.28 after unveiling stronger fourth-quarter profits, fueled by higher interest income and solid mortgage banking performance. Net interest income climbed nearly 3% to $1.78 billion, while the net interest margin — a key profitability indicator — widened to 3.69%. The bank also set aside $125 million for credit loss provisions, covering potential loan defaults. (Reuters)
JPMorgan also rolled out a fresh corporate play before the break. The bank announced the launch of a private capital advisory team focused on helping companies and sponsors raise funds in private markets — that is, outside public stock exchanges — as more big-name firms opt to stay private longer. “Private markets are a strategic priority,” said Anu Aiyengar, JPMorgan’s global head of advisory and M&A. (Reuters)
Investment banks are pushing deal chatter to back up valuations. Morgan Stanley’s CFO Sharon Yeshaya told Reuters the bank is noticing an “accelerating pipeline” in both M&A and IPOs. Sponsors are ramping up activity, considering whether to sell businesses or take them public. (Reuters)
Rates and the Fed chair narrative remain key for the group, influencing lending margins and the chances of an economic slowdown. Treasury yields ticked up after Trump indicated he might retain economic adviser Kevin Hassett, cooling speculation that Hassett would be the next Fed pick and refocusing attention on central bank independence. (Reuters)
There’s a clear downside risk: policy moves might overshadow the fundamentals. Traders remain unsure how fast a 10% credit-card rate cap might shift from concept to reality, how wide its reach would be, and which lenders would take the hardest blow. On top of that, Trump’s threat to sue JPMorgan injects fresh headline risk into the sector.
Markets reopen Tuesday with a key question: will the weekend’s political fallout remain isolated to JPMorgan, or will it spread across the sector? Eyes then turn to Wednesday (Jan. 21), when the U.S. Supreme Court will hear arguments on Trump’s bid to oust Federal Reserve Governor Lisa Cook. Investors see this case as a gauge of how intense the fight over Fed independence might become. (Reuters)
