New York, February 5, 2026, 12:39 EST — Regular session
- Shares of JPMorgan Chase dropped roughly 3% by midday, underperforming the majority of its big-bank rivals.
- Wall Street dipped amid investor doubts over Big Tech’s spending and growth momentum.
- Traders are focusing on the postponed U.S. payrolls report set for Feb. 11, along with inflation figures due later next week.
JPMorgan Chase & Co’s shares dropped almost 3% on Thursday, slipping amid a wider risk-off wave as investors weighed softer U.S. labor data and further declines in the market’s AI-driven segment.
Shares of the largest U.S. bank by assets slipped 2.9%, falling to $308.13 in midday trading.
The decline is significant now since bank shares have been volatile with every shift in rate forecasts and recession talk. As growth concerns push yields lower, lenders risk hitting their net interest income — the difference between loan earnings and deposit costs.
JPMorgan’s drop was sharper than a few competitors. Bank of America slipped 1.2%, Citigroup slid 2.0%, Wells Fargo dipped 1.7%, and Goldman Sachs fell 1.6%. The Financial Select Sector SPDR Fund, meanwhile, edged down roughly 0.9%.
The broader market mood soured as the S&P 500 and Nasdaq dropped to multi-week lows. Alphabet’s announcement of doubling capital expenditures this year, coupled with Qualcomm’s quarterly revenue and profit forecast falling short of estimates, rattled investors already wary about when heavy AI investments might start to pay off. (Reuters)
New labor-market figures fueled concerns. Initial weekly jobless claims climbed 22,000, reaching 231,000. Continuing claims also increased, hitting 1.844 million, per the Labor Department. Carl Weinberg, chief economist at High Frequency Economics, noted there’s “no sign” of recession-level layoffs, describing the claims as “just very low.” (Reuters)
Another measure of labor demand slipped. Job openings dropped by 386,000 to 6.542 million in December, hitting their lowest mark since September 2020, according to the Labor Department’s Job Openings and Labor Turnover Survey (JOLTS). (Reuters)
Layoff announcements surged as well. U.S. employers revealed plans for 108,435 job cuts in January, marking the biggest January figure since 2009, according to Challenger, Gray & Christmas. “This is a high total for January,” noted Andy Challenger, suggesting employers feel “less-than-optimistic” about 2026. (Challenger Gray & Christmas)
JPMorgan and other banks face a tricky balance. Slower job growth could stall loan demand and boost default risks among consumers and companies if the slowdown worsens. Yet, it might also strengthen expectations that the Federal Reserve will hold rates steady or ease up down the line—moves that would alter funding costs and trading dynamics.
Washington remains a key factor. Major U.S. banks have ramped up their lobbying efforts amid regulatory moves to revamp capital rules and ongoing debates in Congress over digital-asset laws and card-payment policies. “You want to make sure you are fully at the table,” noted Ed Mills, a policy analyst at Raymond James, in a Reuters report. (Reuters)
Yet this tape has been volatile, and the data can be deceptive. Weekly claims often swing with winter weather and seasonal quirks. One weak patch doesn’t signal a downturn outright — but a more pronounced slowdown would quickly bring credit quality and earnings forecasts into focus again.
The U.S. Bureau of Labor Statistics announced that January’s employment report, delayed by a shutdown, is set for release on Wednesday, Feb. 11. The January CPI report is scheduled to come out the following Friday. (Reuters)
