Why Did JPMorgan Chase (JPM) Plunge 4.65%?

Generated by AI AgentAinvest Movers Radar
Monday, Apr 7, 2025 4:57 am ET1min read

On April 7, 2025,

experienced a significant drop of 4.65% in pre-market trading, reflecting investor concerns and market volatility.

JPMorgan Chase's stock price decline can be attributed to several factors. The bank's chief economist, Bruce Kasman, highlighted the potential impact of U.S. trade policies on global economic growth. Kasman warned that if current trade policies persist, they could lead to a recession in both the U.S. and globally, with a 60% probability of such an outcome. This pessimistic outlook has contributed to the sell-off in JPMorgan Chase's shares.

Additionally, Kasman's prediction that the Federal Reserve will begin easing monetary policy in June, with rate cuts expected at every meeting until January 2026, has added to market uncertainty. Investors are closely monitoring these developments, as changes in interest rates can significantly impact the banking sector's profitability and stock performance.

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