JPMorgan Chase Drops 3.33% on Trade Tensions

JPMorgan Chase's stock experienced a 3.33% drop in pre-market trading on April 3, 2025, reflecting investor concerns over the recent escalation in trade tensions.

JPMorgan Chase has downgraded its rating on emerging market currencies to "underweight" due to the unexpected severity of the tariffs announced by the U.S. The bank's report highlights that the latest round of tariffs could significantly impact the outlook for emerging market fixed income over the next few months, as the emotional and capital flow shocks may persist, requiring higher risk premiums.

The bank maintains its "underweight" stance on emerging market sovereign and corporate credit but has upgraded local emerging market debt to "neutral." JPMorgan notes that Asian and European emerging markets are more vulnerable to the impact, with potential further currency weakness and lower policy rates in Asia.

JPMorgan also warns that potential retaliatory measures could further dampen risk appetite and corporate confidence, necessitating higher risk premiums for high-yield assets compared to investment-grade assets.