New York, February 3, 2026, 18:23 EST — After-hours trading session
- JPMorgan shares bucked the downtrend in the broader market, staying close to their session highs after hours.
- A Baird upgrade combined with changing rate forecasts thrust large banks back under traders’ spotlight.
- Investors are focused on rate changes, policy cues, and upcoming investor events from the bank.
Shares of JPMorgan Chase & Co climbed 2.18%, finishing Tuesday at $314.85, before slipping 0.09% to $314.58 in after-hours trading. The stock closed $6.71 above Monday’s settlement. (Public)
The gains occurred while U.S. stocks fell, as investors offloaded software and data-analytics shares amid concerns that emerging AI tools might pressure profit margins. “We’re seeing a lot of software companies across the spectrum get hit,” said Art Hogan, chief market strategist at B. Riley Wealth, following the S&P 500’s 0.84% drop. (Reuters)
JPMorgan sees the setup as crucial since banks often behave like a rates play when broader markets jitter. A steeper yield curve offers some relief, while shifts in regulation could alter the capital big lenders hand back to investors.
One immediate trigger came from the sell side. Robert W. Baird lifted JPMorgan to neutral from underperform, maintaining a $280 price target. Analyst David George noted the stock’s risk/reward was “more reasonable but not attractive for new money,” adding it had grown tough to stay short “a best-in-class franchise.” (TipRanks)
The upgrade didn’t come with a straightforward “buy” rating. Baird’s price target remains significantly under Tuesday’s closing price, highlighting that valuation concerns persist despite firms easing off the bearish stance.
Rates remain the key focus for traders. Investors are betting on a steeper Treasury yield curve—that is, a wider gap between short- and long-term yields. This shift tends to boost banks’ earnings by widening the spread between lending rates and funding costs. Eric Kuby, chief investment officer at North Star Investment Management, put it simply: “The main outcome … would be … a yield curve that is more normally positively sloped.” (Reuters)
On Tuesday, JPMorgan’s stock fluctuated from $308.15 up to $316.18, with roughly 12.69 million shares traded, market data shows.
It topped some of its big-bank rivals in trading. Citigroup rose 1.27%, Bank of America climbed 0.78%, and Wells Fargo barely moved, as the broader market slipped lower. (MarketWatch)
Still, the trade can quickly backfire. If long-term yields fall or the curve flattens, the boost to net interest income — the difference between what a bank earns on loans and pays on deposits — can evaporate, undercutting the whole “rates tailwind” narrative.
Policy remains a major uncertainty for the group. Traders are on the lookout for any decisive action on bank regulations and warning signs of renewed bond-market volatility, which might boost trading desks but muddy the waters for a clean rerating.
JPMorgan plans to speak at the UBS Financial Services Conference on February 10 and hold a company update on February 23. Investors will watch closely for insight on the bank’s outlook for 2026 growth, expenses, and capital returns. (Jpmorganchase)
