Why Bank Stocks JPMorgan Chase and Wells Fargo Fell Today
Shares of the bank stocks JPMorgan Chase (NYSE: JPM) and Wells Fargo (NYSE: WFC) fell 1.7% and 2.2%, respectively, for no obvious reason but likely due to new economic data and ongoing tariff news that seems to change daily.New jobs data from February once again missed economist estimates and pointed to further weakness in the economy. Nonfarm payrolls in the U.S. added 151,000 jobs last month, 9,000 less than expected. The unemployment rate ticked up to 4.1% when economists had expected 4%, and average hourly earnings rose 0.3% from the prior month, in line with expectations. Furthermore, the number of jobs added in January were revised down by 18,000 to 125,000.Banks are cyclical, so investors tend to get concerned when they see weakness in the economy because it can result in higher loan losses, and also lead to a decrease in lending activity if businesses don't grow and consumer spending declines.Continue reading
Shares of the bank stocks JPMorgan Chase (NYSE: JPM) and Wells Fargo (NYSE: WFC) fell 1.7% and 2.2%, respectively, for no obvious reason but likely due to new economic data and ongoing tariff news that seems to change daily.
New jobs data from February once again missed economist estimates and pointed to further weakness in the economy. Nonfarm payrolls in the U.S. added 151,000 jobs last month, 9,000 less than expected. The unemployment rate ticked up to 4.1% when economists had expected 4%, and average hourly earnings rose 0.3% from the prior month, in line with expectations. Furthermore, the number of jobs added in January were revised down by 18,000 to 125,000.
Banks are cyclical, so investors tend to get concerned when they see weakness in the economy because it can result in higher loan losses, and also lead to a decrease in lending activity if businesses don't grow and consumer spending declines.
