(Bloomberg) – JPMorgan Chase & Co. jumped the most in 18 months on Monday after Chief Executive Officer Jamie Dimon gave the nation’s largest bank and the US stock market an upbeat comment on the state of the economy.
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Shares of JPMorgan rose 6.2%, the highest since November 2020, making it the fifth-best performing stock in the S&P 500 and the largest contributor to the benchmark 1.9% rally. Bank of America Corp., Wells Fargo & Co. And Citigroup Inc., which has gained at least 5% each, has also helped drive the market.
The KBW Bank Index rose 4.1%, thanks to Daemon’s subtle comments, the forecast for increased net interest income excluding JPMorgan’s market trading and its fixed cost outlook.
Wells Fargo banking analyst Mike Mayo said in a note to clients that the biggest takeaway from JPMorgan’s rally was that it showed that “no recession is imminent.” The presentation was bullish for the company and “more for the industry,” he added.
Bank shares have been under tremendous pressure this year due to concerns that an aggressive series of interest rate hikes by the Federal Reserve could plunge the US economy into recession. The KBW Bank Index has fallen nearly 25% since reaching record highs in early January.
Among the largest banking stocks, JPMorgan has suffered the most While Monday’s surge has helped offset some of the decline this year, lenders are still down 21%, making it the worst-performing major bank’s stock. Still, analysts have not given up on the company, predicting an average 12-month price target of 23% profit, the highest since the epidemic began.
Monday’s push also helped boost sentiment across higher US equity markets. The S&P 500 Financials Index was the best performance sub-gauge of the day where JPMorgan accounted for over 3% of the overall market rise. Meanwhile, Citigroup, Bank of America and Wells Fargo were among the top gainers.
(Includes update price.)
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