New York, January 27, 2026, 10:59 EST — Regular session
- JPMorgan shares slid roughly 0.8% in morning trading, slipping below the $300 mark
- The Fed will announce its decision Wednesday, with the focus shifting to rate forecasts and consumer data.
- Trump’s $5 billion debanking lawsuit ramps up political risks for major lenders
Shares of JPMorgan Chase & Co dropped 0.8% on Tuesday, sliding $2.37 to hit $298.67 by 10:44 a.m. ET, after touching a low of $298.14 earlier.
This shift is crucial as investors scramble to figure out two key points: the path of rates this year and if U.S. consumers are showing signs of strain. For major lenders, that combination can rapidly alter forecasts for loan growth, card usage, and losses.
JPMorgan faces a new wave of Washington scrutiny. The bank is caught in a legal and policy battle that’s already rattling markets—and it doesn’t involve just this single firm.
In early New York trading, broader stocks showed a mixed picture: the Dow slipped, while the S&P 500 and Nasdaq inched higher as investors processed earnings reports and the kickoff of the Federal Reserve’s two-day meeting. Charlie Ripley, senior investment strategist at Allianz Investment Management, noted, “The impetus for markets to continue to rise is going to be an earnings story rather than a multiples story.” 1
Other major U.S. banks showed little movement. Bank of America held steady, Wells Fargo slipped around 0.2%, and Citigroup dropped close to 0.4% during that period.
The market is tilting toward a pause in rates. The Fed is widely expected to hold its benchmark rate steady in the 3.50%-3.75% range on Wednesday. Futures suggest fewer than two quarter-point cuts in 2026, Reuters reported. “A pause makes a lot of sense,” said Tony Rodriguez, head of fixed income strategy at Nuveen. 2
Signs of a weaker consumer environment are clear in recent figures. The Conference Board’s consumer confidence index dropped sharply by 9.7 points to 84.5 in January, marking its lowest point since 2014 and well under economists’ expectations of 90.9. Dana Peterson, the Conference Board’s chief economist, noted that “write-in responses … skew towards pessimism.” 3
JPMorgan is back in the spotlight with President Donald Trump’s $5 billion lawsuit, accusing the bank and CEO Jamie Dimon of shutting accounts for political reasons — an allegation JPMorgan firmly denies. Todd Baker, a senior fellow at Columbia University, weighed in, saying, “The industry is losing as many battles as it wins on big issues,” capturing the tough regulatory environment for major banks. 4
Abroad, Angola revealed that extending its $1 billion debt facility with JPMorgan included swapping part of the collateral bond for a higher-rated one, reducing collateral by $200 million. The deal is structured as a total return swap — a derivative that transfers the asset’s gains and losses in return for fees and collateral. JPMorgan has yet to comment, Reuters reported. 5
Investors remained alert to routine capital-markets activity. A recent filing on the SEC’s EDGAR system revealed the group is still pushing structured notes—a reliable revenue stream that tends to expand when volatility spikes and retail interest rises. 6
Still, the downside is clear. If the Fed turns out hawkish beyond what markets are pricing in, or if political battles over banks lead to new regulations, bank stocks could plunge quickly — and weaker consumer demand would only deepen the pain.
Wednesday brings the Fed statement and Jerome Powell’s news conference. Traders are on alert for any changes to the anticipated rate path — and whether those moves show up first in bonds or bank stocks.
