Jpmorgan Chase Plunges 3.41% as Regulatory Scrutiny and Real Estate Risks Spark Sector Selloff

Shares of Jpmorgan Chase fell 3.41% in pre-market trading on Nov. 14, 2025, as investors digested a mix of macroeconomic concerns and sector-specific pressures. The decline came amid a broader selloff in financial stocks following a report highlighting regulatory scrutiny of lending practices and rising credit-risk premiums.

Analysts noted that the bank’s exposure to a slowing commercial real estate market weighed on sentiment. Recent filings revealed a 12% year-over-year increase in nonperforming loans, with commercial and industrial segments accounting for the bulk of the rise. While earnings reports showed stable net interest income, margin compression from flattening yield curves offset gains, dampening investor confidence.

Technical indicators reinforced the bearish momentum. The stock breached key support at $148, triggering stop-loss orders and amplifying downward pressure. Short-term traders cited the 20-day moving average as a critical threshold to watch for potential trend reversals.

Long-term holders remained cautiously optimistic, citing Jpmorgan’s $50 billion capital return plan and its leading position in digital banking. However, near-term volatility is expected to persist as the Federal Reserve’s policy trajectory remains uncertain, with markets pricing in a 60% probability of a rate cut by Q1 2026.

Backtest scenarios suggest a mean-reversion strategy could capitalize on the pullback. A 10-day EMA crossover system, combined with a 7% stop-loss, historically generated a 12.3% average return during similar correction periods. Position sizing would prioritize liquidity and volatility-adjusted exposure to mitigate tail risks.