New York, Jan 13, 2026, 17:15 EST — Trading after hours
- JPMorgan’s earnings arrived amid the clash of bank results and looming risks tied to credit-card policies.
- Traders balanced robust market activity with weaker deal fees and an expanded card footprint.
- Attention turns to Washington’s rate-cap proposal alongside the upcoming round of major bank earnings.
JPMorgan Chase & Co (JPM.N) shares dropped roughly 4.2% on Tuesday, ending the day at $310.90 in after-hours trading. The stock saw wild swings, peaking around $331 before tumbling to a low close to $310 during the session.
The decline extends past a single company. JPMorgan serves as a barometer for U.S. credit and capital markets, and it’s reporting into a backdrop where banks are increasingly viewed as a policy play, not just an earnings story.
Tensions rose sharply after President Donald Trump suggested a one-year 10% cap on credit card interest rates. JPMorgan executives warned this could lead the industry to tighten credit. Chief Financial Officer Jeremy Barnum described it as “very bad for consumers, very bad for the economy,” adding the bank would need to reduce the credit it extends. (Reuters)
Wall Street dipped after December’s inflation figures revealed a 0.3% monthly rise in consumer prices, pushing the annual rate to 2.7%. Core CPI, excluding food and energy, ticked up 0.2%. The Dow slid 0.8%, while the S&P 500 edged down 0.2%. Financials underperformed, with Visa and Mastercard tumbling nearly 5%, dragging the S&P 500 banking index down over 2%. (Reuters)
JPMorgan posted fourth-quarter net income of $13.0 billion, or $4.63 per share. Excluding a “significant item,” net income came to $14.7 billion, or $5.23 per share. That item was a $2.2 billion credit reserve tied to the Apple Card portfolio’s forward purchase commitment, which the bank said knocked 60 cents off earnings per share. Revenue hit $45.8 billion. Net interest income — the spread between what it earns on loans and pays depositors — increased 7% to $25.1 billion. Markets revenue climbed 17%, while investment banking fees dipped 5%. (SEC)
Some investors felt the setup left scant room for an outright “beat.” David Wagner, head of equities and portfolio manager at Aptus Capital Advisors, pointed out the stock came off a year where “the bar for perfection is set pretty high.” JPMorgan jumped 34% in 2025, yet UBS analysts noted investment banking fees fell short of Wall Street’s estimates by roughly 8%. (Reuters)
The market business provided a boost to the quarter. Investors, however, searched for clearer signs—loan growth, credit losses, and if fee income can hold up amid uneven deal activity.
The bigger threat hanging over the sector isn’t just a single quarter’s earnings report—it’s the uncertainty. Analysts note the rate-cap proposal needs legislation and faces slim chances of passing. Still, Jefferies and Truist warned it could hurt riskier borrowers and force issuers to tighten lending standards. U.S. credit card balances hit $1.23 trillion by the end of Q3, so there’s plenty at stake if lenders start shutting accounts or slashing limits. (Reuters)
With the Apple Card rollout, JPMorgan boosts its footprint in the card sector. Yet Tuesday’s reserve increase highlighted the expense of chasing growth in unsecured loans just as Washington sharpens its focus on pricing.
Traders are now focusing less on further model adjustments and more on timing and news: will the proposed 10% cap prompt legislative action before Jan. 20, the date Trump set for the one-year limit? They also want to see if Bank of America, Citigroup, and Wells Fargo’s upcoming earnings reflect JPMorgan’s blend of solid market performance and card-related concerns. (Reuters)
