New York, January 25, 2026, 10:04 (ET) — Market closed.
- JPMorgan shares dropped 1.95% Friday, closing at $297.72.
- Trump has filed a $5 billion lawsuit against JPMorgan and CEO Jamie Dimon, accusing them of “debanking” him.
- Traders eye the Fed’s decision midweek, alongside JPMorgan’s company update set for Feb. 23.
JPMorgan Chase & Co shares dropped 1.96% on Friday, closing at $297.72. The stock heads into Monday under the shadow of a legal headline.
The decline follows U.S. President Donald Trump’s $5 billion lawsuit targeting JPMorgan and CEO Jamie Dimon, raising the stakes on political risks facing major banks. The sector is still lobbying hard for deregulation. “This case is not likely to move that needle much,” said Brian Mulberry, senior client portfolio manager at Zacks Investment Management, which holds JPMorgan stock. Reuters
Markets head into the week eyeing Wednesday’s Federal Reserve decision alongside a busy earnings calendar packed with megacap tech reports. “Earnings are the driver,” said Chris Galipeau, senior market strategist at Franklin Templeton. Reuters
JPMorgan slipped as financials broadly pulled back. The Financial Select Sector SPDR fund dropped 1.38% on Friday. Bank of America, Wells Fargo, Citigroup, Goldman Sachs, and Morgan Stanley also closed in negative territory. The S&P 500 proxy, however, showed little movement.
Trump claims in the lawsuit that JPMorgan shut down accounts for several of his businesses in April 2021 after years of banking with them, accusing the bank of political motives—a charge JPMorgan denies. The suit was filed in Florida state court in Miami-Dade County, with Trump demanding $5 billion in damages. Investors have labeled this kind of dispute “debanking,” a broad term for account closures or denial of banking services. Reuters
According to the filing and related reports, JPMorgan maintains the suit is without merit and that it shuts accounts when they pose legal or regulatory risks.
The bank set a key date for investors: Feb. 23 in New York. It plans to hold a company update featuring a comprehensive overview and Q&A sessions with its executive team.
Bank stocks remain tethered to rate moves. The U.S. Treasury 10-year yield hit 4.24% on Friday, with shifts in yields rapidly influencing forecasts for bank profits. That’s because they dictate how much lenders earn on loans compared to what they owe on deposits.
JPMorgan and its peers face the risk that their legal battle could drag into a protracted political struggle, drawing in regulators and increasing the chance of policy actions that would affect consumer lending. On another front, if the Fed changes course and pushes yields lower, concerns about pressure on interest income could resurface.
Markets reopen Monday, with investors eyeing whether bank stocks can sustain momentum. Fresh updates in the Trump lawsuit and early moves ahead of Wednesday’s Fed policy announcement also draw focus. JPMorgan’s next company update, set for Feb. 23, remains the key date for management to field a wave of questions.
