New York, Jan 30, 2026, 18:46 (ET) — After-hours
- JPMorgan shares dipped a bit following Friday’s close.
- President Donald Trump chose Kevin Warsh to head the Federal Reserve, thrusting interest rates and banking regulations into the spotlight once again.
- Traders are focused on next week’s U.S. labor-market data, especially Friday’s jobs report.
JPMorgan Chase & Co shares slipped roughly 0.1% to $305.89 in after-hours trading Friday, following a day of swings between $302.59 and $307.82 during regular hours.
The subdued reaction comes as investors adjust to the news on the Fed chair succession. Trump announced he has chosen former Fed governor Kevin Warsh to take over once Jerome Powell’s term ends in May. Warsh has pushed for a “regime change” that would reduce the Fed’s balance sheet and roll back bank regulations. “People question what does that mean for asset pricing and for liquidity,” said Gary Paulin, international chief investment strategist at Northern Trust Asset Management. (Reuters)
Inflation data did little to clear up the debate. U.S. producer prices climbed 0.5% in December, according to a Labor Department report. The Fed kept its benchmark rate steady this week, holding it between 3.50% and 3.75%. “We expect policy to remain on hold for a time,” said Michael Hanson, an economist at JPMorgan. (Reuters)
U.S. stocks closed lower, with the S&P 500 slipping 0.4% and the Nasdaq dropping 0.9%, the Associated Press reported. The Financial Select Sector SPDR Fund, a key measure of financial shares, dipped roughly 0.2%. Bank of America and Citigroup edged up, while Wells Fargo saw a slight decline. (AP News)
For JPMorgan and other big banks, the immediate focus remains on rates, not rhetoric. Rising short-term rates boost interest income initially but also increase deposit costs and dampen loan demand.
Investors keep an eye on the “yield curve” — the difference between short and long-term Treasury yields — as it influences the profitability of borrowing short and lending long. When the curve steepens, it tends to boost big banks’ core lending spreads, but sudden shifts can rattle trading desks.
There’s a downside risk here. A protracted battle over the Fed chair confirmation might unsettle markets, while persistent inflation could push rates higher for an extended period, squeezing borrowers and driving up credit costs on cards, autos, and commercial loans.
Next week’s lineup will be telling. On Tuesday, the Labor Department will roll out the Job Openings and Labor Turnover Survey, followed by January’s employment report on Friday, Feb. 6. These reports often shift rate forecasts sharply and can jolt bank stocks right at the open. (Bls)
