JPMorgan Chase (JPM) Stock Has Been Volatile Recently: What Should You Do?

JPMorgan Chase’s stock has been steadily rising. The stock had been worth $165.36 for the whole period until the final trading session on October 13, when it increased to $171.66 at 11:00 a.m. It dropped to $165.36 an hour later. The stock was valued at $163.59 at the end of the session, a 128% rise in only one day. On Wednesday, JPMorgan Chase announced a higher-than-expected 24% increase in third-quarter earnings, buoyed by a worldwide deal-making boom and strength in its wealth management division. The bank, whose fortunes are a reflection of the strength of the US economy, said strong M&A activity offset a drop in trading volume.

Its consumer bank had a solid quarter as credit card spending increased and clients paid off loans at a slower rate, resulting in more interest revenue for the bank. During the quarter, JPMorgan also released $2.1 billion from its credit reserves. Last year, banks were obliged to put aside billions for potential loan defaults because of the epidemic. A consumer-friendly monetary policy and stimulus cheques, on the other hand, boosted consumer spending and raised savings, allowing banks to release some reserve capital.

Miriam Bozini

Finance and Business Reporter