JPMorgan Chase (JPM) Stock Remained Neutral in Pre-Market after Dropping by 7% on Friday

On Mar 30, 2020 at 1:50 pm UTC by · 3 min read

JPMorgan Chase (JPM) stock price remained in the neutral territory today in the pre-market as strategists say that the worst is over for the financial markets. As the trading opened, JPM started falling.

JPMorgan Chase & Co (NYSE: JPM) stock remained neutral during the pre-market. Sources say that the banking behemoth’s stock prices seemed to hold steady as many expect the U.S. economy to go into a recession.

This period of negative growth has been expected for the past month or so. This comes as the COVID-19 situation seems to go from bad to worse. There is no end in sight to the pandemic itself for now.

JPMorgan Chase (JPM) Stock Price Movements

Sources say that the stock prices fell by about 7.12% to $91.13 on Friday. This, however, was followed by a net loss to $90.75 (-0.42%). This places JPM stock price at a zero loss and gain for last weeks’ session.

Today as the market opened, JPM started falling again. At teh time of writing, it is trading at $90.41 (-0.79%).

Sources say that JPM’s strategists have indicated that the market conditions for a recession are past their worst moments. The strategists indicated this in a note on Friday. They further said that COVID-19 remains an uncertain factor. With top strategist John Normand taking the lead, the strategists referred to it as a “wildcard”. The strategists reportedly said that:

“Risky markets should remain volatile as long as infection rates create uncertainty about the depth and duration of the Covid recession, but enough has changed fundamentally and technically to justify adding risk selectively. Most risky markets have probably made their lows for this recession, except perhaps oil and some EM currencies beset by debt-sustainability issues.”

This selective risk could still exist in critical markets and industries. This is expected to continue as nations still have travel and movement restrictions in place hence the volatility. Transportation. healthcare, logistics and other mission-critical industries are likely to experience this volatility.

Normand also indicated that the analysts expect the markets to achieve higher levels in the incoming quarter.

This sentiment is not shared by everyone. The guys at Goldman Sachs expect things to still even out with time. David Costin believes that the markets will rise and then fall depending on several factors. The COVID-19 infection rate is one. The net effect of government stimulus is another among others.

Too Many Stimulus Measures by Fed Hints at U.S. Economic Recession

Talking about the stimulus, banking giants such as JPMorgan Chase could be hurt strategically by the U.S. Fed’s rate cuts. Several analysts believe that the rate cuts will affect JPMorgan Chase (JPM) stock prices. This is because the stock prices are already at a premium. As such, when any dip in the stock prices comes, achieving this current price range might be an uphill climb.

To many, the Fed’s rate cut is indicative of a looming recession. The free flow of easy money into the U.S. economy shows that many businesses aren’t doing that well.

Many analysts, however, believe that this won’t affect the banking giant’s balance sheet. They also expect that the prices will even out over time as the core factor (COVID-19) that is leading this recession was unexpected. Once it goes away things will return to normal.

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