JPMorgan Down 2.6% After Fitch Warns Downgrade Could Be Coming

According to credit rating agency Fitch, Wall Street banks, including JPMorgan, may have their ratings lowered if the operational climate for their sector continues to deteriorate. In response to the reports, JPMorgan’s stock dropped 2.6% to $150.64 per share, while other lenders also saw price changes.

According to a report from CNBC on Tuesday, a Fitch Ratings analyst expressed concern that U.S. banks, including JPMorgan Chase, would suffer downgrades if the agency further lowers its assessment of the industry’s operating environment.

Fitch downgraded the “operating environment” rating for the U.S. banking sector in June from AA to AA-, citing pressure on the nation’s credit rating, holes in the regulatory framework, and uncertainty over the trajectory of future interest rate rises.

Leave a Comment