Why Bank Stocks Like Wells Fargo and JPMorgan Chase Are Tumbling Today
Bank stocks are ending the trading week on low note, down across the board much more than the broad market's setback of around 2.2%. As of 3:07 p.m. ET shares of JPMorgan Chase (NYSE: JPM) and Wells Fargo (NYSE: WFC) are lower to the tune of 5.1% and 6.9%, respectively, leading the charge lower in addition to setting an industrywide bearish tone.
The prompt behind the selling? Mostly more reason to expect an interest rate cut sooner rather than later, and perhaps a bigger one than previously expected.
A quarter-point rate cut in September was already more likely than not. In light of today's jobs report for July, however, the market's now betting the Federal Reserve will cut the federal funds rate by a half point. This more aggressive stimulative stance may be merited given that the U.S. unemployment rate unexpectedly jumped from 4.1% to a multiyear high of 4.3% last month, while payroll growth fell to 114,000 new jobs versus expectations of 175,000.
Source Fool.com
JPMorgan Chase & Co. Stock
The stock is an absolute favorite of our community with 37 Buy predictions and no Sell predictions.
With a target price of 201 € there is a slightly positive potential of 9.7% for JPMorgan Chase & Co. compared to the current price of 183.22 €.
