JPMorgan Chase Shares Plunge 4.66% on Elevated Costs, Fragile Outlook

JPMorgan Chase shares plunged 4.66% in pre-market trading on Dec. 10, 2025, marking a sharp decline as the bank signaled elevated costs and a fragile consumer outlook. The drop mirrored broader market sentiment, with the stock on track for its largest intraday fall in eight months.

The selloff followed comments from Marianne Lake, head of consumer and community banking, who outlined a $105 billion expense forecast for 2026—surpassing analyst expectations of $101 billion. The projected costs were driven by growth-related expenses, strategic investments, and inflationary pressures, particularly within the consumer banking division. Lake highlighted increased spending on AI, branch expansion, and advisor incentives as key contributors to the upward revision.

Lake also tempered optimism about the economic outlook, noting a “more fragile” environment for consumers and small businesses despite stable cash buffers. Her remarks echoed concerns raised in 2022, when similar cost guidance triggered a market downturn. While investment banking and trading revenue growth outpaced some forecasts, the bearish tone on expenses and consumer resilience weighed heavily on investor confidence.

Investors are now turning their attention to upcoming quarterly earnings reports and broader market indicators to gauge whether this bearish sentiment will persist or if JPMorgan can rebound through strategic cost management and improved consumer banking performance. Analysts remain divided on the long-term outlook, with some citing structural challenges in balancing growth and profitability in a high-cost environment.

As the stock continues to trade under pressure, market participants will be watching for signs of improved cost control, revenue diversification, and strategic AI adoption in 2026 to determine if the recent decline is a temporary setback or the start of a prolonged downturn for the financial giant.