New York, Jan 28, 2026, 11:08 ET — Regular session
JPMorgan Chase & Co shares held steady Wednesday after the bank announced it will match the U.S. government’s one-time $1,000 contribution to “Trump Accounts” for children of eligible U.S. employees. The stock last dipped 3 cents to $300.28, moving between $298.11 and $300.45 earlier. CEO Jamie Dimon said the match aims to help workers “start saving early” and “plan for their family’s financial future.” Business Insider pointed out that BlackRock and Charles Schwab have made comparable commitments. (Business Insider)
Bank of America will match the initial $1,000 contribution for eligible employees, an internal memo obtained by Reuters reveals. This move highlights how quickly the benefit is becoming a point of competition among major employers. The accounts, set up under President Donald Trump’s “One Big Beautiful Bill Act,” will see the U.S. Treasury deposit $1,000 into investment accounts for children born between 2025 and 2028 with a valid Social Security number. The government plans to invest these funds in low-cost index funds — broad stock baskets — that will grow tax-deferred, meaning taxes kick in only upon withdrawal. (Reuters)
The key driver for bank stocks on Wednesday won’t be an employee benefit. All eyes are on the Federal Reserve, which is broadly expected to keep the policy rate steady after its two-day meeting, while markets are pricing in two quarter-point cuts later this year, Reuters noted. “We expect banks will become more willing to lend as economic growth picks up,” said Nationwide economist Oren Klachkin. The Reuters report also highlighted that JPMorgan’s average loans jumped 9% last quarter. (Reuters)
Within the sector, the Financial Select Sector SPDR Fund edged up around 0.07%. Bank-focused ETFs slipped a bit: the SPDR S&P Bank ETF dropped about 0.05%, and the SPDR S&P Regional Banking ETF fell roughly 0.16%. The SPDR S&P 500 ETF gained close to 0.04%.
Rate expectations are crucial since they directly influence how banks set loan prices and interest on deposits. When investors change their outlook on future rates, bank stocks tend to move sharply, often regardless of the day’s other news.
The “Trump Accounts” match feels more like a move tied to HR and branding than something set to boost earnings soon. That said, it comes at a time when big banks are already ramping up spending on wages, tech, and compliance. Investors have been quick to react to any sign of rising ongoing costs.
JPMorgan highlighted fee-driven growth with the launch of the JPMorgan International Dynamic ETF (ticker: JIDE) on NYSE Arca by J.P. Morgan Asset Management. “JIDE is designed to give investors a dynamic edge” amid U.S. demand for international diversification, said Travis Spence, the firm’s global head of ETFs. The fund carries a 0.55% net expense ratio and targets developed-market stocks outside North America. According to the release, J.P. Morgan Asset Management managed $4.2 trillion in assets as of Dec. 31, 2025. JPMorgan Chase reported $4.4 trillion in assets and $362 billion in stockholders’ equity at year-end. (PR Newswire)
Such product launches rarely shift a bank’s stock on their own. Still, they underscore a common investor belief: consistent fee income offers a cushion when loan growth and deposit rates fluctuate.
But the risk runs the opposite way. Should the Fed show less tolerance for inflation or delay rate cuts, yields could surge, dragging volatility into financial stocks. If growth slows more quickly than anticipated, credit costs rise, and the advantage of “higher for longer” interest rates evaporates quickly.
The next big event is just ahead: the Fed’s policy announcement lands at 2 p.m. ET. All eyes will be on Chair Jerome Powell’s remarks afterward, searching for hints on the rate trajectory that could steer bank margins next quarter. (Reuters)
