First-quarter 2023 earnings from JPMorgan Chase & Co, Citigroup Inc and Wells Fargo & Co beat Wall Street expectations on Friday as consumer and corporate spending held up in the face of rate rises, although all three saw signs of a slowdown and made provisions accordingly.
“Goliath is Winning,” Wells Fargo analyst Mike Mayo said in a note citing a “uniquely strong quarter” for JPMorgan, calling it “a port in the storm” during recent banking sector tumult.
JPMorgan shares soared 7.6% in their biggest one-day percentage gain since November 2020.
Banks are building up rainy day funds as fears of an economic slowdown mount from the U.S. Federal Reserve’s aggressive interest rate hikes to tame inflation as well as the recent turmoil fueled by the failures of two mid-sized banks.
JPMorgan CEO Jamie Dimon warned that while the U.S. economy remains robust, last month’s banking crisis with the sudden collapse of Silicon Valley Bank (SVB)…
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