JPMorgan Chase saw its shares plunge by 5.2% on Tuesday, following a cautionary update from the bank’s President and COO, Daniel Pinto. Pinto warned that investors might be underestimating the bank’s future expenses and overestimating potential earnings from interest. This advisory significantly impacted JPMorgan’s stock performance.
The downturn follows earlier comments by CEO Jamie Dimon, who had suggested that the bank’s stock might be overvalued. Despite reaching a record high at the end of August, JPMorgan shares have since declined by approximately 9%.
JPMorgan’s struggles are part of a broader trend observed at the Barclays investor conference this week. Ally Financial’s cautious outlook affected card companies, while Goldman Sachs reported a decline in revenues from fixed-income markets.
As of Tuesday’s close, JPMorgan Chase & Co. shares were trading at $205.56, down $11.25 or 5.19%.
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