JPMorgan Chase Stock Price Plummets

　　Ahead of the U.S. presidential debate, the Dow Jones Industrial Average and small-cap stocks showed weak performance, while the S&P 500 and Nasdaq indices rebounded in the afternoon, marking two consecutive days of gains.

　　JPMorgan Chase experienced a significant drop due to a reduction in earnings forecasts, with the stock plummeting by as much as 7.5% during trading, the worst single-day decline in four years.

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　　Ultimately, JPMorgan Chase closed down 5.2%, the largest closing drop since April 12. Other bank stocks were also affected, with Goldman Sachs falling about 4.4%, Citigroup down around 2.7%, and Morgan Stanley decreasing by 1.6%.

　　These declines were primarily driven by pessimistic expectations for the U.S. banking sector. Bank of America predicted its investment banking performance would fall short of expectations, while Goldman Sachs forecasted a 10% year-over-year decline in trading revenue. Additionally, Ally Financial reported worsening borrower credit, which further heightened market risk aversion. The Dow Jones Industrial Average briefly dropped over 400 points.

　　JPMorgan Chase President Pinto stated that the analysts' forecast of $89.5 billion in net interest income (NII) for next year was overly optimistic, with actual figures likely lower. Two months ago, the bank's forecast was around $91 billion. Meanwhile, Goldman Sachs CEO predicted a 10% drop in trading revenue for Q3.

　　As investors awaited the upcoming CPI inflation data and the first debate between Trump and Harris, they maintained a cautious stance with no major buying or selling activity. Demand for 3-year U.S. Treasury bonds was strong, and the bond market expected inflation rates might fall below the Fed's target, leading to a broad decline in U.S. bond yields. The U.S. dollar index rose by more than 0.1%, safe-haven currencies performed well, with the yen rising to 142.